Corporate Data (as of December 31, 2023)
Corporate
ProfileName of Company

Aoyama Zaisan Networks Company, Limited
3F Aoyama Tower Place,Head Office8-4-14 Akasaka, Minato-ku,
Tokyo 107-0052
Phone: +81-3-6439-5800

Incorporated

September 17, 1991

Capital stock

1,210.99 million yen
Property consulting

Business line

Business succession consulting
Real estate solutions consulting

Number of employees (Group)

298 (across group companies)

Aoyama Zaisan Networks Company, Limited

Nihon Shisan Souken Co., Ltd.
Aoyama Estate Co., Ltd.

Integrated Report 2024

Aoyama Financial Service Co., Ltd.
Consolidated subsidiaries

Aoyama Family Office Service Co., Ltd.
Aoyama Zaisan Networks Kyushu Co., Ltd.
Aoyama Zaisan Investments Co., Ltd., and 4 other companies

Executives

President

Masazumi Hasumi

Director, Managing Executive Officer

Masayuki Yagi

Director, Managing Executive Officer

Takeshi Matsuura

Director, Managing Executive Officer

Takaomi Ogawa

Director, Managing Executive Officer

Shintaro Hashiba

Director, Executive Officer

Shinji Shimane

Director

Michihiro Nagasaka

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Director

Madoka Mori

Outside Audit & Supervisory Board Member (standing)

Hiroyuki Fujita

Audit & Supervisory Board Member

Hisao Nakatsuka

Outside Audit & Supervisory Board Member

Hiroaki Rokugawa

Stock
Overview

Number of shares in issue

24,520,859 shares

Number of shareholders

11,223

Major
Shareholders

Name(as of March 31, 2024)(Top 10)

No. of shares held

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

3.7

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 Employee 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 LIMITED OMNIBUS—MARGIN (CASHPB)

277,800

1.14*Ratio of shares held to total number of shares issued (excluding treasury stock) (%)

For more information or inquiries about this report,
please contact:
Aoyama Zaisan Networks Company, Limited
Corporate Planning Division
Phone: +81-3-6439-5824
URL: https://www.azn.co.jp/contactus/
2404083

Contents
We will remain
your best partnerin 100 years.
We are a comprehensive property consulting firmthat safeguards both assets and the future.
Management objectives❶ We seek to contribute to the happiness of our clients
through the succession, operation and management of property.
❷ We seek to ensure both the physical and mental well-being of the members whom we work with.

Our Profile

Overview of Aoyama Zaisan Networks …… 4
Our Value Creation Story

Our Value Creation Story ……… 6
Our Vision

Our Vision ……… 8
Our Strategy

Medium-Term Management Plan ……… 9
Top Message

Presidentʼs Message ……… 12
Our Diversity

Promoting active roles for women ……… 16
CFO Message

Core values❶ We are committed to helping our clients resolve their asset-related problems,
and we will continue to grow into a company that takes true pleasure in helping our clients.
❷ As we work for AZN, we accumulate virtues and undergo growth
into people with strong interpersonal skills.
❸ We seek to maintain the balance among financial, physical,
and mental resources and to enrich and expand each of these aspects,
enabling our clients to lead happy lives, and us too.

CFOʼs Message ……… 17
Our Value Drivers

Reliable products and services ……… 18
A reliable organization ……… 20
Consultants ……… 21
Our Sustainability

Introducing the Board of Directors …… 22each of us seeks to develop his or her wisdom, capacity for action,

Corporate Governance ……… 24
Message from Outside Directors ……… 26

and interpersonal skills, always displaying tenacity and passion.

Sustainability Management ……… 28❹ Each of us understands his or her role, and to fulfill that role,

Our Data

Financial & Non-financial Data
(Summary) ……… 32● Editorial Policy of this Report
This report primarily covers performance for FY2023 (January 1, 2023 to December 31, 2023). But
some parts deal with data or events from prior years or from most recent years. Essentially, the subjectof this Report is Aoyama Zaisan Networks and its group companies (10 consolidated subsidiaries) asof December 31, 2023.
● Notes on future prospects
The contents of this Integrated Report that are not historical facts are future forecasts made by Aoyama
Zaisan Networks Company, Limited based on its outlook and plans. These future forecasts containfactors including risks and variables; actual outcomes and performance may vary from them.
● Published in May 2024

Our Profile

Overview of Aoyama Zaisan Networks

Growth trajectory

Our business model and 100-year property consulting
from property consulting to real estate transactions, withproperty consulting revenue being our main source ofprofits.
Through comprehensive property consulting for theperpetuation of families and businesses, Aoyama Zaisan
Networks contributes to the happiness of its clients. We
will continue to grow sustainably to become Japan's No.
1 comprehensive property consulting firm, supported byclients who know, "When it comes to property, it's Aoyama
Zaisan Networks."

Aoyama Zaisan Networks (AZN) is a property consulting
group serving both individual asset owners and businessowners. After commencing business in 1991 as a groupcompany of Funai Consulting Incorporated, the firm
focused initially on the real estate business. With the global
financial crisis of 2008 as a turning point, we expanded
our business from a short-term profit taking structure
centered on resale of real estate to a long-term, total
optimization standpoint on property consulting for ourclients as our main focus. Our revenue classifies broadly■ Revenue from property consulting■ Revenue from real estate transactions■ Revenue from resale of real estate■ Revenue from subleasing and other income⚫ Ordinary profit(Sales: million yen)

32,00028,000(Ordinary profit: million yen)

7,000
6,000

24,0005,000

20,0004,000
16,0003,000

12,000
8,000

2,000

4,000

1,000

0

0
First Medium-Term Management Plan

Second Medium-Term
Management Plan

-1,000-2,000-3,000-4,0002006

2007

Period of growth in property
consulting services forindividual asset owners

2008

2009

2010

2011

2012

Expansion of the fieldof business succession
consulting for corporate
owners as a result of mergers

Comprehensive property consulting Property succession/operations/management and business succession
Consulting & Analysis of Current Situation

Planning & Proposals

Action & review

Analyzing issues, presenting options for countermeasures, and accumulating data through the ART system
Interview anddocument
collection

Analysisof Current
Situation

Identifying
issues

Proposals⚫ Consulting on property succession, operations,management, and business succession⚫ Consulting products and services
Short-term plan

ActionInvestigation &review

Mid- to long-term plan

2013

2014

2015

2016

2017

2018

Period of growth as acomprehensive property consulting
firm

2019

2020

2021

2022

2023

(year)On to the new stage by
expanding collaborations
and getting fortified withtechnologies

The Aoyama Zaisan Networks business model involves
building relationships of trust by contributing to thehappiness of its clients and earning ongoing property
consulting revenue from these long-term relationships.
Our consulting process is firmly based on interviews withour clients and collection of documentation. We provide
long-term support to our clients by repeating this cycle:
analysis of the current situation, identification of issues,planning and proposals, implementation, verification, andreview by our own analysis tools and experts. By utilizing
AZN Group's proprietary ART system, we provide highquality consulting services ranging from analysis of current
situations to planning and proposals.
In the fields of property and business consulting, AZN
is committed to 100-year property consulting to look after
property not only for the current generation, but also forthe next generation and the following generations. Working
from a total optimization standpoint, we are always striving
to solve issues related to the succession, operations, andmanagement of property as well as business succession

by building long-term relationships with our clients andproposing methods to smoothly facilitate succession andoperations. By doing this, we maintain and expand the sizeof our clients' assets and perpetuate their families and theirbusinesses, providing the foundation for AZN Group toearn stable revenue.
⚫ 100-year property consulting
A business model in which long-term relationships are builtwith clients, which generates long-term revenues throughconsulting from the current generation to the next generation
and beyond.

Scale of Asset ValueBusiness

Third Medium-Term
Management Plan

2005

100-year property consulting offering long-term support for the current generation, next generations, and third generation*From 2019 onward, revenue from subleases is included in revenue from real estatetransactions and other revenue is included in revenue from property consulting.

⚫Transitions in business portfolio and net sales
36,000⚫ Business model

Third-generation manager
Third-generation owner
Next-generation manager
Next-generation ownerCurrent manager
Current owner
Property succession/operations/management and business succession
Time

The market environment & our strengths
Business line
Comprehensive property consulting, which lies at thecore of our business, is a consulting service designed
to achieve the optimal property structure to perpetuate
our clients' families and businesses. We offer a one-stop
consulting service for the succession, operation, andmanagement of property and business succession for
individual asset holders (landowners and financial asset
holders) and corporate owners.
Our group supports total optimization planning andimplementation for our clients through expert perspectives,with more than 150 national certificates holders employed
by AZN, and through our unique analytical methods built
up over many years.

4

Aoyama Zaisan Networks ｜ Integrated Report 2024

⚫ Business and service overview
Businessline
Clients

Comprehensive property consulting(property succession/operations/management and business succession)

Individual asset
ownersCompany owners⚫ Inheritance strategy⚫ Effective utilization of real estate⚫ Utilization of large expanses of land
⚫ Buying and selling of realestate, and more

⚫ Business succession (supporting successors)⚫ Mergers and acquisitions⚫ Support for business transitions
and closures⚫ Financial improvement, growthstrategies, and more

(average assets: 1 billion yen)

List ofServices⚫ Advantage Club, regional development projects,
overseas operations, IFA

In January 2015, Japan’s Inheritance Tax Act wasamended, reducing the basic inheritance tax exemption
and raising the maximum tax rate to 55%. This has resulted
in a sharp increase in the number of persons now subject totaxation, as well as a significant increase in the percentage
subject to taxation. As a result, we have received anincreasing number of inquiries from individual asset owners,
and some of them have become our clients.
In terms of business succession, Japan’s declining
birthrate and aging population have caused a chronic
shortage of suitable successors for businesses. By 2020,
the average age of company presidents in Japan was inexcess of 60 years, and the percentage of companies
without designated successors hovered around 55%.
We anticipate that our clients' needs for the succession,

operation and management of their property as wellas succession of business will continue to expand. Byleveraging AZN’s strengths as a group and consistently
working to resolve these issues, we will continue toaccompany our clients into the future.
⚫ Strengths of Aoyama Zaisan Networks

1

Expert insights and application of technology

2

Ability to propose and implement total optimization
based on 5 standpoints

3

Comprehensive property consulting services for assets
and business

4

Reliability that comes from being listed on the stock
exchange, and neutrality that comes from being independent

Aoyama Zaisan Networks ｜ Integrated Report 2024

5

Our Value Creation Story
AZN Group's Management Objectives are "To contributeto the happiness of our clients through the succession,
operation and management of property" and our mission is"To achieve the optimal property structure through consulting
on the succession, operation, and management of property
so that our clients’ families and businesses can develop andprosper."
In order to realize this mission, AZN Group exists to "deliver
optimal proposals from a bird's-eye, big-picture perspectivein order to solve our clients' problems." We contribute to ourclients’ happiness through the enrichment of their property,

bodies, and minds by solving property-related problems thatexists in society, in the belief that the enrichment of social
property will lead to sustainable growth for society. We
have outlined the process of value creation as shown in the
diagram below.
Firstly, as an AZN comprehensive property consulting firm,
we provide total optimal solutions to the property concerns ofasset owners and business owners that have some bearing
upon social issues.
We contribute to our clients’ happiness by helping toresolve issues and eliminate concerns, and by helping tobuild relationships of mutual support between property
and business/family for our clients. Our clients' families willcontinue to grow and prosper, passing on better assets andbetter businesses to the next generation and onwards to thefollowing generations.
Our society will see the benefits of these businesses andassets growths, aiding in the achievement of a sustainable
society in which communities and society prosper,
employment grows, and quality services continue, which inturn will support the sustainable growth of AZN Group. This
enables us to realize our management objectives and ourphilosophy, which in turn will lead to creation of value for ourclients and for society.
As times change, so do social issues and our clients'
property concerns. For new concerns and new social issues,
we envision a cycle of processes in which we, as a group of
experts, provide new solutions to help our clients develop
further. This is the value creation story of our AZN Group.
In the future, we will focus not only on succession andvalue creation around property and business, but also on
helping to create value to pass on the family's philosophy
and aspirations.

⚫ Value creation process at Aoyama Zaisan Networks

Social issues

Business model

Value creation
Outcomes⚫ Achieve management objectives ⚫ Create new business and sustainable growth ⚫ Create human resources⚫ Enhance employees' material and mental well-being ⚫ Build social trust

Property concerns

Aoyama Zaisan Networks

Clients

SocietyInheritance

Assets and business/family mutually support each other

Assets (business/family) and society mutually support each other

Many property-related
concerns have becomesocial issues
To whomshould I give myinheritance ...?

Comprehensive
property
consulting

I’m concerned
about future living
expenses ...

I can’t pay
inheritance taxes ...

We have no
successor ...

Operations

Preparation for theunexpected

Achieving happiness forour clients by enhancing
their financial, physical, andmental resources

Management

Concerns
We’re notprepared for an
emergency ...

The family isdrifting apart ...

Business baseConsultants with strong
interpersonal skills

Rural property
values are
declining ...

Reliable products andservices

A reliableorganization

Sustainability management
Promoting Digital
Transformation (DX)

Instilling management
philosophy

Strengthen human resources and give women
opportunities to play more active roles
Contributing to society

Stronger governance

Smooth successionof management

Reform of work styles

Management andmaintenance ofproperty

Smooth successionof property

Employment is safeguarded
by the company’s sustainable
development

When a good company
survives, good service survives

Sustainable social
growth throughasset enhancement
Property, which is social capital,
functions effectively

As businesses and families
prosper, local communities arerevitalized

Securing funds to pay
inheritance tax

Achieving optimal asset composition
Expansion of assets included inconsultin

Promoting Task Force on ClimateRelated Financial Disclosures (TCFD)

Concerns and worries about assets diversifying due tothe changing times

6

Aoyama Zaisan Networks ｜ Integrated Report 2024

Aoyama Zaisan Networks ｜ Integrated Report 2024

7

Our Vision

Our Strategy

Medium-Term Management Plan

Third Medium-Term Management Plan

Japanʼs top comprehensive property consulting
firm supported and chosen by many clients as“When it comes to property,

it's Aoyama Zaisan Networks”

Our vision is to become Japan's No. 1 comprehensive
property consulting firm, supported by clients' whoknow, "When it comes to property, it's Aoyama Zaisan
Networks." Our Medium-Term Management Plans areformulated to realize this long-term vision.
Following the First Medium-Term Management
Plan in our venture phase and the Second MediumTerm Management Plan in our growth phase, the Third
Medium-Term Management Plan for the three-year period
beginning in FY2022 is positioned as a period of expansion
and growth as a comprehensive property consulting firm.
AZN Group's profits and sales grew steadily during theventure period, but from FY2019 to FY2021, which had
been positioned as a growth period, our profits, sales, andproductivity per consultant remained flat, and AZN Group
is currently experiencing something of a growth plateau.
Therefore, for our Third Medium-Term Management Plan,
we have formulated a plan with clear quantitative targets,
keeping in mind the paramount issues of increasing

profitability and productivity.
With regard to operating profit, in order to be able toprovide services that exceed client expectations, we aim
for continuous growth each year. In the final fiscal year of
this plan, FY2024, we expect gross profit of 7 billion yen,operating income of 3.5 billion yen, and an operating profit
ratio of 9.2%.
With respect to the 211 consultants currently on
staff, AZN aims to increase the proportion of property
consulting revenue in its gross profit and improve sales by
substantially increasing the number of consultants throughaggressive investment in human resources. At the sametime, we will be promoting DX to increase productivity andimprove our operating profit ratio.
To accomplish these goals, various measures havebeen formulated for the Third Medium-Term Management
Plan, based on the 4 standpoints outlined on the following
page.

Our
Vision⚫ Third Medium-Term Management Plan (Overview)

Second Medium-Term
Management PlanFirst Medium-Term
Management Plan

FY2019–2021

FY2014–2018

as a group company of Funai Consulting Incorporated.

FY2022–2024

Period of growth expansion
as a property
consulting firm

as a property
consulting firm

as a property
consulting firm

Aoyama Zaisan Networks started business in 1991

Third Medium-Term
Management Plan

Period of growth

Period of venture

the company we
aim to become

Japan’s top comprehensive
property consulting firm
supported and chosen by
many client as“When it comes toproperty, it's Aoyama
Zaisan Networks”⚫ Shifts in operating profit in the Third Medium-Term Management Plan

Period of
expansionand growth(million yen)

We have operated as a property consulting company offering real estate solutions.
Growth period

We have expanded our business in Japan and overseas as a consulting company
providing comprehensive property-related solutions to “individual asset owners” and3,265“corporate owners,” marking our 30th anniversary in 2021.

2,629

Venture period

Having declared our management objectives as, "We seek to contribute to
the happiness of our clients through the succession, operation and management of

1,464

property," we will continue to make further strides to realize our long-term vision tolook after the assets of our clients and, by extension,160

of society, and to lead them into the future.

2013

445

485

2014

2015

751

2016

2018

First Medium-Term Management Plan

8

Aoyama Zaisan Networks ｜ Integrated Report 2024

1,603

1,094

2017

3,500
(forecast)

2019

1,856
1,303

2020

2021

Second Medium-Term
Management Plan

2022

2023

2024 (year)

Third Medium-Term
Management Plan

Aoyama Zaisan Networks ｜ Integrated Report 2024

9

Our Strategy Medium-Term Management Plan
⚫ 4 standpoints of the Third Medium-Term Management Plan
Standpoint

1

Standpoint

Achieving higher quality andquantitative expansion of ourclient services, based on thetwin cornerstones of strategic
individualized services andcomprehensive property
consulting services

Standpoint

1

2

2

3

Standpoint

4

We offer property consulting

Growing into a consulting

Proactive approach to social

services via smartphone and online

group with strong

contribution activities

communication tools as standard

interpersonal skills

services

Achieving higher quality and quantitative expansion of our client services, based on
the twin cornerstones of comprehensive property consulting services and strategic
individualized services

AZN Group offers eight strategic individualized services,
including Advantage Club®, a small-lot real estate product,
and aims to improve quality and expand quantity inconjunction with its other cornerstone of comprehensive
property consulting services.
Some new clients may feel that suddenly dealing witha comprehensive suite of property consulting services is
too much. For this reason, we believe that by first making
contact with our clients through strategic individualized
services that meet their needs, and then using that asa starting point, we can smoothly connect them to ourcomprehensive property consulting services.
We look forward to increasing revenues by meetingclient needs through the synergistic effect of these
services and by building long-term relationships.

Standpoint

Standpoint⚫ The relationship between strategic individualized
services and comprehensive property consulting
services
ADVANTAGE
CLUB
Effective realestate use
consulting

Family officeservice

Regional
creative
development
consulting⚫ ART system & web-based consulting
Comprehensive property consulting services

10

ADVANTAGE
CLUB

Purchase
consulting

Business
succession fund

STO (Security Token
Offering) business

Financial asset
management consulting
service

Regional creative
development consulting

Family office service

Effective real estateuse consulting

Aoyama Zaisan Networks ｜ Integrated Report 2024

ART
systemReceiving inquiry

Meeting & consulting

Application

Ongoing follow-up

Consultant responds
to referral from financial
institutions, etc.

Consultant handles
everything from the initial
stage

Mainly face-to-face forclients in the Tokyo area
(online meetings also used)

Written application

Personalized follow-up by
consultant

Utilize digital platforms

Division of labor × ART
systemFor clients nationwide
Online meetings × ART
systemApplication via smartphone(ADVANTAGE CLUB, etc.)

Utilize digital platforms(From 2022
onward)STO (Security
Token Offering)business

Group in February 2021.
The ART system integrates and incorporates theknowledge of top consultants in various fields, including

Strategic individualized services

Contact point with new client

Business
succession fund

We offer property consulting services via smartphone and online communication
tools as standard services

We will aggressively promote DX to increase profitability
and productivity. The core of this approach is the ART
system, which was developed and introduced by the

BeforeStandpoint

Financial asset
management
consulting service

provide more extensive care to clients than ever before.
The system is currently undergoing improvement
to provide standard services using smartphones andonline communication tools. For example, from 2022
we introduced the ability for users to check the statusof their investments and dividends using Advantage
Club, our flagship product for strategic individualized
services, via a smartphone app, and we plan to introduce
a function enabling purchases in the future. We are also
strengthening our direct marketing and considering new
developments, including the use of platforms to provide a
digital window into the market.

⚫ Improving productivity and customer service with DX

After
Purchase
consulting

Comprehensive
property consulting
services

inheritance strategies, business succession, and utilizationof real estate. With the simple input of client data, thesystem can speedily analyze issues and present options
for strategies and measures. By utilizing the ART systemand online services, we are able to provide consulting
services to numerous clients throughout Japan.
Also, by introducing the ART system, we haveestablished a system for division of labor in consulting
work. Our inside sales team handles the initial stageof each project, and is able to provide standardized
consulting using the ART system. This allows our highly
specialized consultants to demonstrate their expertise, tofocus on comprehensive property consulting work, and to

For more nationwide
client Providing webbased consulting

3

Growing into a consulting group with strong interpersonal skills

For our consultants, it is of paramount importance toearn the trust of our clients in order to successfully consult
with them about their valuable assets and businesses.
To achieve this, it is essential that we grow into a
consulting group that possesses strong interpersonal skills
combining integrity, kindness, and compassion. Amongthe interpersonal skills required, AZN considers a senseStandpoint4of wanting to help others—the desire to contribute to thehappiness of our clients—to be particularly essential.
In order to build up such interpersonal skills, in addition
to ideals training conducted in-house, we promote
initiatives such as supporting participation of Group
employees in activities that contribute to society outside
the company too.

Proactive approach to social contribution activities

In conducting sustainable operations, it is also importantthat companies actively engage in social contribution
activities as part of their corporate social responsibility.
AZN has been continuously making donations to the Tokyo
Medical Association and providing supplies to medical
institutions, using a portion of the profits generated
through its business.
From 2022, in addition to donating to organizations tacklingsocial issues such as eliminating pet euthanasia completely
and promoting subsidized meals for children, we have also
promoted our employees' own social contribution activities
and have established a new social contribution plan as ashareholder benefit, among other efforts. We will continue tomake company-wide contributions through cross-functionalorganizations such as our Sustainability Committee to help
realize a society that sustains many people in happiness.

Aoyama Zaisan Networks ｜ Integrated Report 2024

11

Top Message

Presidentʼs Message

We aim to be a partner to our clients,
providing advice from a bird's eye view ofthe overall situation of property.
As needs for property succession, operation, and business succession continue to expand, the demands
placed on us as consultants are growing increasingly diverse and complex.
To support these needs, we have adopted a vision of "becoming a leader in the wealth management business,"
and are working to train our consultants and improve their productivity, strengthen our relationships withclients, and diversify our marketing strategies, among other measures.

A robust domestic economy and increasingly
uncertain global situation—How do you envision changes in social trends andthe business environment?
I think there’s a sense that society is finally moving backto normal. Although the COVID-19 pandemic swept theworld for several years, more and more people seem to befeeling brighter about the future of the Japanese economy, as
symbolized by the record-high Nikkei Stock Average. Wagelevels are trending upward and the real estate market is strong.
Against the backdrop of rising asset prices, the needs ofhigh-net-worth individuals in regard to property succession,business succession, and asset management are increasing.
By 2024, all baby boomers will reach the age of 75. Over the
next 10 to 15 years, demand will peak.
With regard to business succession, we are seeing
remarkable diversification of needs as well as an increasing
number of cases. Many of our clients are family businessowners. These are people who started their businesses
during Japan’s era of strong economic growth, and who
have protected and grown these businesses over many
years. However, industrial structures and the businessenvironment have changed dramatically in recent years,
and some companies have been severely damaged by the
lingering effects of the pandemic over the last few years.
Given these circumstances, an increasing number of owners
are unable to find a successor and are instead opting forthird-party M&A.
Turning from Japan to the world, several factors are
driving instability, including wars and conflicts, intensifying
competition between the US and China, and the slowdownof the Chinese economy. Compared to a few years ago,

President

Masazumi Hasumi
12

Transitions in numbers of clients and property consulting sales
Property consulting sales (Unit: Million yen)

Numbers of clients (Unit: Individuals)
7,082

5,806

5,564

1,823

2019

6,204

1,905

2020

5,545

2,076

2021

uncertainty is definitely on the rise. We need to continue tomonitor the potential negative impact on Japan of this global
situation. More and more high-net-worth individuals believethat they need to be ready and prepare themselves for any
eventuality.

Third Medium-Term Management Plan andmedium- to long-term vision—2024 is the final year of the Third Medium-Term
Management Plan. Could you give an overview of recent
business performance?
In our Third Medium-Term Management Plan, these three
years were positioned as a period of expansion and growth.
As mentioned earlier in reference to expanding needs, ourrecent performance has been good, due in part to a favorable
business environment. For example, the number of clientreferrals from financial institutions increased significantly
from approximately 1,000 in 2022 to approximately 1,300 in
2023. The number of clients who have entered into contracts
also increased from about 300 to about 400.
Property consulting revenues are also growing. One major
factor is an increase in unit contract price. This is due in partto the rise of the real estate market, as well as the improved
capabilities of individual consultants. In 2023, productivity
per consultant saw a year-on-year increase of approximately
10%. However, this does not match the rate of increase inunit contract price over the same period.
This demonstrates a challenge in regard to the qualityof consultants, who are being hired in increasing numbers
as our business expands—or in other words, the need to
improve their consulting skills. To respond to diversifying
needs as the number of consultations increases, we needto further improve the productivity of our consultants. We will
discuss this point in greater detail later.
Our Third Medium-Term Management Plan calls for thestrengthening of strategic individualized services. Thesecomprise eight services, including Advantage Club, a real

2,377

2022

2,780

2023

2024 (forecast)estate joint ownership system, as well as purchase consulting
and consulting on effective utilization of land, in which we
provide comprehensive support from real estate selection to
post-purchase management, operations, and sale. These
services are gradually growing and contributing to earnings.
We believe that further growth can be expected in the future.
Moreover, changes in society and in the businessenvironment are accelerating. In order for our business togrow, we need to keep abreast of changes in the environmentand continue to develop services that meet the needs of thetimes. In addition to expanding these eight services, we arealso carefully considering our next move.
—Could you tell us about your vision and the kind ofcompany Aoyama Zaisan aspires to be?
Our mid- to long-term goal is to "becoming a leader inthe wealth management business." We aim to build longterm relationships of trust with high-net-worth individuals,
such as owners of real estate and financial assets, as wellas corporate owners, and provide optimal advice basedon a bird's-eye view of our clients' overall wealth. We seek
to consult with the most people and help solve the mostproblems in Japan. As your partner, this is the kind of wealthadvisor we aspire to be.
To realize this vision, it is essential that we increase
productivity. As we proceeded with our Third Medium-Term
Management Plan, three issues emerged: "We do not haveenough consultants to handle increasingly diverse clientneeds and complex projects," "There is still scope to improve
relationships with our clients," and "We need to enhance ourmarketing methods."
First is the need for consultants who can handle
increasingly diverse and complex projects. When passing
on property and business, a wide range of knowledge isrequired, including tax law, corporate law, civil law, and otherlaws, as well as business and other areas of knowledge.
Client needs are becoming more diverse and complex. We
need to increase the number of consultants who can reliably
be entrusted with any project.

Aoyama Zaisan Networks ｜ Integrated Report 2024

13

Top Message Presidentʼs Message

Property consulting revenue per consultant
Number of consultants (Unit: persons)
Revenue per consultant (Units: thousands of yen)
33,31734,15330,301 30,562

167

170

183

2019

2020

2021

33,564

203

211

2022

2023

34,782 (forecast)

230 (planned)2024

We need to increase the number of consultants who canreliably be entrusted with any project.
The next thing is improving our relationships with clients.
If we build a relationship where we’re able to offer clientssolid advice on any kind of property matter, they will feelable to contact us immediately with any problem. We needto address the issue of how to establish, maintain, andstrengthen these relationships.
Finally, marketing. Referrals from financial institutions are
extremely important as a gateway to accessing high-networth individuals. We are currently looking at ways to further
strengthen cooperation with financial institutions, but othermeans of access could also be considered. As one way, we
have been actively engaged in direct marketing to individual
clients since 2023, and we are starting to utilize the data tothis end. In 2024, we are expanding those efforts to include
corporate owners and are working on initiatives to achieve
greater contact with more clients.

Themes that need to be addressed to realize thevision—What do you think it will take to realize this vision?
Our three goals are to "improve interpersonal skills,""create a supportive environment for consultants," and"realize a pleasant and rewarding workplace."
The single most important thing for a consultant is having
interpersonal skills. We tend to think we can solve problems
with our own knowledge and skills, but is that really true?
Clients will not entrust important work to someone without
a sense of trust and reliability—and not only in matters ofproperty.
They need to know that consultant will not lie, will not

14

Aoyama Zaisan Networks ｜ Integrated Report 2024

cheat, and will be sincere. This is absolutely necessary for aclient to select a consultant as a partner. On the other hand,even if the consultant is intelligent and handles his or her job
with ease, if any doubt exists as to whether he or she will be
there for the client when some problem arises, the client will
not bring important matters to the consultant.
That is why over and over again, I emphasize theimportance of "interpersonal skills" within our company.
Another way to look at "interpersonal skills" is about
contributing to others and having a sense of care for them.
We need to have an altruistic mindset, and work on building
virtue. Such a state of mind is evident in our demeanor, evenin our smallest actions. I am certain that this is conveyed toour clients too.
It is not easy to incorporate the development ofinterpersonal skills into our educational program, but as wework on devising new approaches, we seek to strengthen
our efforts in interpersonal skills.
Of course, interpersonal skills alone are not enough.
Consultants need to develop interpersonal skills in tandemwith their capacity for action. To enhance training andenvironment in order to improve the capacity for action of
our consultants, we have established a DX Promotion Unit
and are promoting DX, including the use of AI, to create
an environment that supports our consultants in their work.
As is often the case with consulting firms, expertise andknowledge gained through work tends to be accumulated
by consultants individually. I think that even in our company,
there has been a lot of reliance on individual abilities. Thishasn’t been a huge problem for us, because we know whoto ask if we have any problems with work.
However, as the number of consultants increases andremote working becomes more commonplace, oldfashioned "analog" exchange of information becomes
more difficult. The ways in which we communicate internallyalso need to change. We are working to establish anenvironment conducive to such change.
In other words, we’re designing an environment that
ensures the expertise of individual consultants is stored in thesystem, enabling the necessary information to be retrievedat any time. If we can organize expertise across different
fields systematically, this will enhance the capabilities of all
our consultants. For example, a consultant may be asked
to advise a client who wants to create a will. At that time,
the consultant must be able to properly explain the typesof wills and all the procedures involved. Previously, junioremployees learned by asking senior employees, but if therelevant information is organized and stored in the system,
it can be accessed even from outside the office, enabling
consultants to make recommendations to customers more
rapidly.
Various measures such as creating a digital environment
and a pleasant workplace helps us improve the capabilities

and productivity of our consultants and other employees.
—What exactly is your approach to creating apleasant workplace?
Well, specifically, it is about creating a workplace that isboth easy and rewarding to work in. Ease of work meansthat each individual can work according to his or her
circumstances. Everyone works as permitted by their own
circumstances, including raising children, caring for theirparents, or managing their own health. Ten different people
are sure to have ten different sets of circumstances. We needto create an organizational culture that fully understands
and accepts every aspect of individual circumstances. For
example, let’s say someone wants to take a day off to care
for a child. We need to create a workplace atmospherein which he or she can just say, "I want to take a leave
day on this date," and also create a system in which workcolleagues can cover for each other. I believe we need tofocus on these initiatives as well.
It is also important to create a rewarding workplace.
When consultants feel they have made a client happy, or feelthat they have contributed meaningfully, they feel rewarded
and motivated to work. Also important are factors suchas a sense of growth through daily work, education andtraining opportunities, and promotion and compensationcommensurate with ability.
It is not easy to make a workplace both highly pleasantand rewarding, respectively. We are sure to face manydifficulties along the way, but we hope to make steadyprogress toward creating a better workplace.

Provide unwavering leadership without
departure from core policies—Will creating a workplace that is both pleasantand rewarding to work in have a positive impact on
recruitment? It’s also linked to growth of our employees.
Many industries are suffering from a shortage of human

Our efforts to becomea leader in the wealthmanagement business from2024 onward

resources, and the situation can be expected to remainchallenging. Given this environment, how to recruit talented
employees is a major challenge. While we do hope that abetter work environment will have a positive impact, weshould be wary of expecting too much.
As I mentioned earlier, the number of consultants withadequate ability has increased only slightly, and improving
their quality remains an issue, but we must assume that
increasing the number of consultants significantly will bedifficult. However, I believe that increasing the skills andproductivity of each individual is essential for our sustainablegrowth as a company. This is in line with the concept ofhuman capital management, which has been gaining more
attention recently.
One major factor in this regard is active roles for women.
We have a growing number of female consultants, and in
2024 we welcome our first female executive director. Her
particular work ethic, which sees her take good care not onlyof her clients but also her partners, makes her a role model
for female employees. We also welcomed a female outside
director with a wealth of expertise in health management
and other areas. As we benefit from their perspectives, wehope to create a pleasant workplace in which everyone canwork with ease. Creating a workplace that takes advantageof women's perspectives is also crucial for empowering
governance.
—How would you describe your own role as company
president?
The policies I have outlined above were determined throughconsensus after gathering opinions across the company.
My role is to provide unwavering leadership so that theentire organization can move forward without departingfrom those policies. Of course, another important roleis checking the progress of each department in terms ofplanning, and devise countermeasures in case of any delay.
However, I believe the core aspect is honing and enhancing
my own interpersonal skills.

1

Thoroughly train consultants to build personalvirtue,centered on altruism, in order to enhance theirinterpersonal skills

a supportive environment for consultants
2 Creating
through application of DX, AI, etc.

3 Creating a pleasant and rewarding workplace4

Beyond our eight individual services, providing
new services
capable of meeting diversifying customer needs

Aoyama Zaisan Networks ｜ Integrated Report 2024

15

Our Diversity

Promoting active roles for womenWorking to increase the diversity of our human resources and further enhance our corporate value
To achieve continuous improvement of corporate value,
the AZN Group conducts analysis* on the correlation between
human resource strategies and management indicators. The
results show a statistically significant correlation between
the ratio of female employees and corporate value (Price-toBook Ratio). We consider this an important fact, and we aim
to increase the ratio of female employees to 40% and theratio of female managers to 30% in the future.
To achieve this goal, we will implement measures toimprove awareness within the company, support careerdevelopment, and improve the working environment (e.g.,curtailing overtime hours, establishing a backup system
to cover for unexpected leave, etc.). In 2023, with thecommitment of our Board of Directors, we also establisheda subcommittee to promote active roles for women. We
are developing further measures to maintain and improvethe diversity of our human capital, the true source of ourconsulting services.
⚫Number of Group Employees and Percentage ofFemale Employees
Group employees
Female employees
Percentage of female employees(employees)

(%)

350

50
298

290

300
250
212
200

31.7

30.1

28.3

27.1

24.5

30

20

64

70

78

2019

2020

2021

52

50

92

96
10

0

0

2018

2022

2023

⚫Number of Group Managers and Percentage ofFemale Managers
Group managers

Female managers

Ratio of female managers(employees)
80

(%)
25
71

70
60
50

66
60
16.7

55

59

18.6

18.2

19.7

68 20.6
20

12.7

15

40
10

30
20
10

7

10

11

12

14

14

0

16

5

0

2018

2019

2020

Madoka Mori
As a medical journalist and newscaster, I believe thatthe well-being of the individuals who make up our society
is founded upon physical and mental health, and I havededicated myself to improving health literacy, which isessential for well-being. I was appointed as an outside
director because of my affinity with the company's
vision, which aims to drive growth by enhancing financial,physical, and mental resources.
I believe that individual health issues in the workplace
have a significant impact on everyone around, and that
resolving these issues leads to a better overall work
environment. Women's health issues, in particular, often
impact their performance and careers, and measures toaddress them are urgently needed.
To contribute to a virtuous cycle of mental and physicalhealth and growth, I will work earnestly to address theseissues, drawing on my knowledge as a medical journalist
and my own experience of overcoming life events andhealth challenges to continue my career.

32.2

150
100

Outside Director

40

259

247

236

Leveraging knowledge and experiencefor sound and healthy management

2021

Aoyama Zaisan Networks ｜ Integrated Report 2024

2022

2023

Changes in society, changes in the way
we work, and the importance of diversity
Executive Officer, Real Estate Division
General Manager, Regional Development Project Division

Masako Miyagami
The best part of the real estate business is that no two
properties are ever the same—you discover something neweach time. I joined the company in 2003 because I was sure
I could learn more deeply through handling real estate forclients.
Since joining the company, the way I work has changed
following broader changes in society. For example, thespread of remote work has made it easier to balance workwith raising children. People can work according to theirown circumstances, regardless of gender or age. Japan’ssociety has been making steady progress in this respect,assisted by technology.
AZN has also kept pace with these social changes,
and our diversity is steadily increasing. It's great to have
employees from different backgrounds pool their wisdom
to think about solving client issues, among other things.
In the future, I hope to contribute to the company's
growth from a broader perspective as an executive officer
who plays an active part in management.

*An analytical model to clarify the relationship between non-financial capital and corporate value (PBR): ESG
accounting value proposition and disclosure, Ryohei Yanagi, Monthly Capital Markets 2021.4 (No.428)

CFO Message CFOʼs Message
ROIC management encourages autonomous
efforts to improve in each department
In recent years, we have focused on building relationships with local clients inconjunction with regional financial institutions, and steady results are evident.
Return on Invested Capital (ROIC) management, which we introduced several
years ago, is taking root in all departments. We are focusing on human resource
development, aiming for sustainable growth.

Greater investment in consultants and other human resources—Could you give an overview of how your businesshas evolved in recent years?
For about two years, we have been strengthening ourpartnerships with regional financial institutions and enhancing
our eight strategic individualized services. The need for these
services is growing and our client numbers are increasing
every year. We expect to see even more regional financial
institutions cooperating with us in the future.
Succession of local companies is a major theme forregional financial institutions. Many of these are leading
companies that play a role in driving the local economy.
Smooth business succession of crucial business partners isa major challenge for regional financial institutions. In manycases, it is necessary to prepare for the succession of not
only the business but also the family's property and otherassets at the same time.
Many companies are facing difficult circumstances due tochanges in industrial structure and the COVID-19 pandemic.
On a case-by-case basis, some companies may be able
to re-energize themselves through M&A. Our wide range
of know-how and solutions tailored to the characteristics
of each company can help resolve regional issues, which ishighly valued by the regional financial institutions with which
we work.
—Could you tell us about areas of focus for the future?
Above all, it is important to develop consultants and otherhuman resources. We have made major changes from the
OJT-centered policies of several years ago. Starting last year,
we have clearly formulated a stance of investing in humanShareholder Return Policy(1) Dividend payout ratio at 50% level(2) Continuous dividend increases(3) Maintain DOE level above cost ofshareholders' equity*Assuming a cost of equity of approximately 8%

FY2021 FY2022 FY2023 3-year average

TargetPayout ratio 45.7%

50.1%

48.3 %

48.0%

50% level

DOE

11.0%

11.2%

10.8%

10% level

10.1%

Director, Managing Executive Officer

Shintaro Hashiba

resources, including the use of external training services.
In FY2024, we are increasing human resource-related
expenses by approximately ¥500 million, mainly by improving
salary levels and investing in education. Human resource
development takes time, but I get the sense that it leads toindividual growth.

Robust balance sheet and expanded cash flow
—What do you emphasize for sustainable growth, from afinancial perspective?
Above all, our focus is on maintaining a robust balance sheet
and expanding our cash flow. As for the balance sheet, wehold two years of SG&A expenses as cash and deposits
to ensure that we can continue operations no matter what
unforeseen circumstances may arise. At the same time,
we maintain a certain level of interest-bearing debt in orderto lower our weighted average cost of capital (WACC).
However, net debt is kept negative.
Although we deal in real estate, we have a policy of not
holding any real estate inventory. Thus, our balance sheet isextremely healthy.
In FY2023, our operating cash flow was 2.488 billion
yen and free cash flow was 2.7 billion yen. Expanding cash
flow is important in order to respond quickly to investment
opportunities such as M&As.
Shareholder understanding of these policies is alsoessential. Our policy is to control return on equity (ROE) at
a level of 20% with an assumed cost of capital of 8% and apayout ratio of 50%, aiming for a dividend on equity (DOE)
ratio of 10%. With these goals in mind, we strive for balanced
financial management.
—Could you tell us about the ROIC management thatcommenced in 2021?
The main objective of introducing ROIC management
is to establish autonomous efforts toward improvement,
devised by each department. Which value drivers need to be
improved? How should they be improved in order to increase
the ROIC of the department? For example, shorter leadtimes and greater productivity in consulting engagements
are clearly reflected in ROIC figures. Such discussions andinitiatives are becoming more active within departments, andwe feel that ROIC management is showing how effective it is.

Aoyama Zaisan Networks ｜ Integrated Report 2024

17

Our Value Drivers
The role of comprehensive property consulting is tosmoothly facilitate inheritance and business succession
and to achieve the optimal property structure to perpetuatefamilies and businesses.
Until now, AZN has focused on providing comprehensive
property consulting services, but in order to expand ourpoints of contact with new clients, we have established a

Reliable products and services

system of eight strategic individualized services that will see
wider use in our Third Medium-Term Management Plan.
In collaboration with leading partners, we intend toincrease the added value of each strategic individualized
service, and by undertaking DX, we are making
improvements to make our services both easier to use
and more extensive.

Purchase consulting

Family office service

In our purchase consulting services, we not only support
purchases of real estate—we also understand each client's
unique purchasing objectives and provide consistent
support from property selection, purchase, management ofholding period, consideration of sales timing, selection ofbuyers, to post-sale follow-up.

For a family business to endure, maintaining andstrengthening the supportive relationship between thecompany and the founding family is crucial. We provide
long-term support for creating and operating mechanisms
to maintain and strengthen the family unity that forms thebasis of this supportive relationship, through workshops,
preparation of family charters, and support for the operationof family councils.

STEP

1

Analysis of
Current Situation
Interview to identify
problems and provide
adviceADVANTAGE CLUB®

BusinessparticipantsSpecified joint
real estate
ventures

Acquisition

Voluntary partnership
Financialinvestment

Eligible real estate

Rent

Voluntary
partners

Carry out
administrative
work
Managing
Director Aoyama
Zaisan Networks

Tenants

Depending on the voluntary partnership, the type of real estate lease may vary.
"ADVANTAGE CLUB" is a trademark of Aoyama Zaisan Networks⚫ Examples of land utilization methods⚫ Features of AZN Group's
Landowners

Retail stores

Reclassification

Aoyama Zaisan Networks
Real estate Store location
information information

Store location information

Fixed-term lease, exchange of equal value

Tenant companies
Total coordination of
store openings

Residential (detached house rental)

Comprehensive property
consulting (proposals for
effective utilization of real estate)

Residential (apartment, condo)

Request for utilization of real estate

Warehouse

Aoyama Zaisan Networks ｜ Integrated Report 2024

Review whether property
suits intention ofpurchase, whether price isappropriate, etc.

STEP

5

STEP

6

Purchase

Ownership &Operation

Sale

Total support as Aoyama
Zaisan Networks

Post-purchase
operational support

Support during andafter sale1

The one-family
philosophy

62

FamilygovernanceIndividual growth& development5

Non-property
fieldsSynergistic effect3

Businessmanagement &management offamily assets

Contributing tosociety

We develop and operate public real estate through public–
private partnerships, utilizing AZN’s expertise in specified
joint real estate ventures and financing. Specifically, we
commercialize underutilized land owned by local governments
and other entities through more effective utilization, with theaim of revitalizing regional communities. AZN and its clients
also contribute to the healthy development of local economies
through these investments. The first project of AZN Group's
regional development, Komatsu A×Z Square, a complex facility
next to JR Komatsu Station in Ishikawa Prefecture, openedin 2017. The second is a land use project in the TSURUGAPOLT SQUARE otta complex to the west of Tsuruga Station in
Fukui Prefecture, which opened in 2022. This project received
an award from the Minister of Land, Infrastructure, Transport
and Tourism in the 2023 Land Utilization Model Awards.

Property field

Financial asset management consulting service
Aoyama Financial Service, our consolidated subsidiary,
plays a central role in this, and through group collaboration
with Aoyama Zaisan Networks as an IFA*3, assists clientswith optimal asset management to meet their objectives
from a comprehensive, long-term standpoint based onsolid analysis of the current situation.
*We will only share information
subject to the client’s consent.

Comprehensive
property consulting

Clients

Financial
instrument
consulting

Business succession fund
We offer optimum plans for companies that areconsidering closure due to difficulties with businesssuccession. Always pursuing the possibility of businesssuccession through downsizing, we offer measures topreserve management assets by systematically providing
employment even in the event of business closure.
Operating profit
surplus

Relatives

The question is who willtake over?

Management
profit deficit

Board member [Management buyout (MBO)]
Third parties [M&A]
Downsized succession

Decision to
downsizing or
discontinue prioritizedover successors

Pursuing possibility of businesssuccession through downsizing

Business discontinued
Proposing measures to minimize burden
on management and employers

Aoyama Zaisan Networks has acquired trademark rights to the term "downsized succession."

STO business*4
The revision of the Financial Instruments and Exchange
Act in 2020 made it possible to issue digital securities,
and we plan to partner with Hash DasH Holdings, which
possesses blockchain technology, to keep developing ourreal estate expertise with the aim of creating a world where
investment is possible 24 hours a day, 365 days a year.
In 2023, real estate provided through our first fund, "RealEstate Digital Securities, Shibuya Jingumae Innovation
Office" was made available as digital securities.
Hash DasH
Investments

Smartphone

Dividends

Matching

Use of ART system*1 Share of cumulative total assets of voluntary partnerships under the Act on Specified Joint Real Estate Ventures (as of December 31, 2021) *2 As of December 31, 2023

18

Selecting property
information
Visit to proposed property

State of management?

a bias toward their respective areas of expertise. On the other
hand, since AZN assigns each job to property consulting
teams with specialized skills, we are able to provide one-stop
proposals featuring total optimization methods of utilization
best suited to the land, after first confirming the overallsituation of the property, taking into consideration various
conditions such as verification of cash flow and selectionof construction providers, design companies, construction
companies, and operating companies.

Childcare, education

3

4

We assist our clients in planning and implementing effective
utilization of land in the Tokyo metropolitan area. AZN'steam of experts in effective land utilization works to gather
information and consider problems related to your land or
buildings, such as underutilized land, unprofitable land,vacancy issues, or deteriorating buildings, and proposes thebest utilization of real estate to solve your problems.
In general, proposals from companies involved in theeffective use of land tend to be partially optimized, skewed by

WelfareSTEP

Review

Succession ofbusiness and assets

Effective real estate use consulting

Medical42

Regional creative development consulting
Distributionof profit

Based on the Act on Specified Joint Real Estate Ventures,
this is a real estate leasing system that jointly purchases
high-value real estate in central Tokyo and receives income
from real estate leasing. Clients can invest from unitsof 10 million yen, stable income can be expected, andthe real estate management system is unparalleled. As
of December 31, 2023, AZN had 71 partnerships withcumulative total assets of more than 140 billion yen and
No. 1 market share.*1 Our target for 2024 will be 28.8
billion yen worth of new investment. In order to make ourservices available to new clients, we have been working
with financial institutions since 2021, and have formed
partnerships with 43 institutions*2 to date. As the market
leader, we will continue to play a role in driving the market.

STEP

STEP

Proposal & Visit

Collaboration

Real estate

Shift to ST

Provided throughsecurities markets

Broad base ofindividual investors*3 IFA: Independent Financial Advisors *4 In our STO (Security Token Offering) business, we plan to supply and manage real estate.
Aoyama Zaisan Networks ｜ Integrated Report 2024

19

Our Value Drivers A reliable organization

Consultants

One-stop solutions utilizing the power of the Group and its network

Our strengths lie in expert insights and interpersonal skills

global comprehensive property advice, international realestate product development, financial product brokering,
and assistance with non-property succession.
Affiliated corporations include law firms, tax accountant
firms, and social and labor insurance firms, as well as joint
ventures with partners who have strengths in property
succession and business succession. This affords ourclients a broad choice of the best options.
We have also established the AZN National Network,
which connects accounting and tax accountant firms
located throughout Japan. As of December 2023, thenumber of member firms had reached 93, making AZN's
high-quality services available nationwide in Japan.
We intend to continue strengthening our organization to
improve the quality of our services.

Aoyama Zaisan Networks is a property consulting
company that not only provides consulting services, but isalso capable of delivering proposals for solutions.
This is enabled by specialized divisions within thecompany. These are the Consulting Division, which
provides consulting services, and the Real Estate Division,
which is responsible for the creation, operation, andmanagement of real estate products that meet the needsof our clients, with more than 150 national certification
holders on staff.
Through close collaboration with our consolidated
subsidiaries, affiliated corporations, and joint ventures, theGroup is able to provide one-stop solutions to a broad
range of client issues. Our consolidated subsidiaries provide
region-specific property consulting, real estate management,● Aoyama Zaisan Networks Group Structure

Comprehensive property consulting forproperty succession, operations, and management

Education⚫Using the ART system⚫Consultant education program⚫Consulting Education Center

Consulting Department

Our consultants, who are professionals in tax, finance,
real estate, and other fields, serve as the face of Aoyama
Zaisan Networks and provide consulting services directly
to our clients. We employ 211 consultants, which isapproximately 2.2 times the number at the end of 2014.
The comprehensive property consulting services
that our consultants provide have two distinguishing
characteristics.
The first is achieving total optimization by combining
expert insights. Succession, operation, and managementof property and business span very diverse fields, including
tax, legal, insurance, real estate, and management. If eachspecialist provides advice only in his or her own respective
field, inconsistencies can arise. However, AZN is able topropose and support the total optimization of succession,
operation, and management planning and implementationthat takes into consideration all of these fields.
At AZN, we believe it is crucial to help our clients lookforward to a better future. Our goal is to set our clients
upon a path that will ensure their families’ wellbeing for the
next 100 years. We firmly believe that our responsibility as
consultants is fulfilled only when our clients are satisfied
with our solutions.
Our consultants' outstanding expertise, coordination
skills, and wealth of experience enable us to provide suchconsulting services. Moreover, our Consulting Advisory,
Legal, and Business Development Divisions, which

include certified public accountants and tax accountants,
provide strong backup with advanced expertise.
The second distinguishing characteristic is ourinterpersonal skills. There is no single "right" way topass on your property or business. Perhaps you wantyour children to take over your business, or you want toliquidate it in your own time. Some people want to focus
their wealth-giving on those who will succeed them, whileothers want to distribute their wealth equally among theirchildren. What’s important is seeking the best for eachclient, rather than any single logical "correct" solution.
For this reason, Aoyama Zaisan Networks consultants
are required to possess a broader range of knowledge,balance, presentation skills, and the ability to think fromthe client's standpoint than ever before. It is essential tohave the mindset of wanting to resolve clients’ problems,
and to have the interpersonal skills (compassion) to put
ourselves in each client's position and to work together
with the client.
AZN focuses on instilling interpersonal skills, and ourconsultants possess not only specialized expertise but
also strong interpersonal skills. We also have mechanisms
for sharing and deepening the knowledge of our consultant
members. This system is what enables us to provide 100year property consulting to deliver satisfaction not only to
our clients personally, but also to the next generation andon to the third generation.

Specialized departments to support consultants
Real Estate Business Department

Business Development Division

Consulting Advisory Department

Legal Department

Formulation, operation, andmanagement of real estate products
tailored to client needs

Support from tax accountants andothers in structuring and managementof various products

Tax-related support from tax
accountants, certified public
accountants, and others

Support for risk managementwith legal expertise

Affiliated firms

Consolidated subsidiaries

Certified public tax accountancy firms, social
and labor insurance firms, law firms

Nihon Shisan Souken Co., Ltd.

Aoyama Estate Co., Ltd.

Comprehensive property consulting services
and consultant training services for individualand corporate assets

General property management (PM) operations,
including real estate solution operations, andlease management of properties owned by AZN
and its clients

Aoyama Financial Service Co., Ltd.

Aoyama Family Office Service Co., Ltd.

Financial instruments intermediary business

Consulting in non-property fields for families
owning family businesses

Aoyamagodo Tax Corporation
Zeimu Sogo Tax Corporation (Certified Public Tax Accountants)
Proggest Certified Social Insurance and Consultant Office

The basic capabilities ofany consultant are wisdom,
capacity for action, andinterpersonal skills. We
provide training to developthese capabilities fromthe two perspectives ofcomprehensive sales skills
and specialist skills.

Educational system

Major tax accountancy firms, major law firms, etc.

Comprehensive
sales skills

Further developing agroup of professionals

Specialist
skillsJoint venture companies

Aoyama Zaisan Networks Kyushu Co., Ltd.

Aoyama Zaisan Investments Co., Ltd.

Shinsei Aoyama Partners Co., Ltd.

Comprehensive consulting services related tobusiness succession and asset utilization

Financial and accounting consulting services led
by certified public accountants and licensed tax
accountants

Management of business succession funds

Aoyama Wealth Management Pte.Ltd.

PT Aoyama Zaisan Networks INDONESIA

Comprehensive overseas property advice

International real estate product development
2 other companies●Developing a group of professionals

Investment by Shinsei Bank Group and our Group (50% each)

WisdomInterCapacity
personal
for action
skillsWisdomInterCapacity
personal
for action
skillsNext Navi Corporation
Comprehensive consulting for businesssuccession and post-succession
Investment by Nihon M&A Center Holdings Inc.
and our Group (50% each)

As of December 31, 2023

20

Aoyama Zaisan Networks ｜ Integrated Report 2024

Aoyama Zaisan Networks ｜ Integrated Report 2024

21

Our Sustainability

Introducing the Board of Directors

Director

Masazumi Hasumi
President

August 1983

Joined Aoyama Audit Corporation(currently PricewaterhouseCoopers
Japan LLC)
November 1991 Joined Yamada & Partners Accounting
OfficeDecember 1996 President of Proggest Co., Ltd.
(company name changed to Proggest
Holdings, Ltd. in July 2005)
July 2005
President of Proggest Co., Ltd. (current:
Aoyama Zaisan Investments Co., Ltd.)
September 2008 Director of the Company
October 2008
President
August 2016
Business Succession Navigator
Corporation(currently Next Navi), President
June 2017
PT Aoyama Zaisan Networks
Indonesia, Director (current position)
March 2018
Chairman of Nihon Shisan Soken Co.,
Ltd. (current position)
October 2020
Aoyama Financial Service Co., Ltd.
Representative Director
January 2021
Aoyama Family Office Service Co., Ltd
President (current position)

Masayuki Yagi

Director, Managing Executive Officer
April 1990
September 1991
March 2006
January 2011
March 2013
March 2014

January 2021
June 2021
January 2022
March 2022
March 2022
January 2024

Joined Murakami Corporation
Joined the Company
Director, Executive Officer, and Manager of First
Business Department
Executive Officer of the Company
Manager of Individual Asset Consulting Department
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of theCompany
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of the Company
General Manager of Business Division andGeneral Manager of Real Estate Division II
Business Succession Navigator Corporation(currently Next Navi), Director
Director, Managing Executive Officer, and General
Manager of Administration Division of the Company
Director of Aoyama Estate Co., Ltd. (current
position)
Director of Aoyama Zaisan Investments Co., Ltd.
(current position)
Director, Managing Executive Officer of the Company
General Manager, Consulting Division (current
position)Takeshi Matsuura

Director, Managing Executive Officer
April 1991
May 1995
October 2000
January 2005
January 2006
March 2007
January 2011
March 2014
March 2016
June 2017
January 2021
January 2022
March 2023

Joined Daiwa House Industry Co., Ltd.
Joined Nissho Iwai Real Estate Corp. (current: Sojitz
Corporation)
Joined the Company
Executive Officer, Manager of Real-estate
Department
Funai Estate Co., Ltd.
(currently Aoyama Estate Co., Ltd.)
President
Director, Executive Officer, and Manager of Business
Division 6
Executive Officer, Manager of Real-estate
Department
Director, Executive Officer, and General Manager ofReal Estate Division of the Company
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division
Director of Shinsei Aoyama Partners Co., Ltd.
(current position)
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division I
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division (current
position)
March 2022 Director of Aoyama Financial Service(current position)

Michihiro Nagasaka

Haruo Shimada
Director Outside

Director

April 1985
March 1992
December 2010
March 2014
April 2015
July 2021
March 2022

Joined Wakabayashi Law Office
Joined Nihon M&A Center Inc.
Manager of Business Promotion
Department
Outside Director of the Company
Manager of Sales Support Department,
General Planning Division of Nihon M&A
Center Inc.
Business Succession Navigator
Corporation (currently Next Navi),
Director (current position)
Director of the Company (current
position)

April 1975
April 1982
March 1986
June 2000
March 2007
April 2007
May 2015
January 2016
April 2017
February 2021

Keiji Watanabe
Director Outside

Independent

Associate professor of Faculty of
Economics, Keio University
Professor of Faculty of Economics, Keio
University
Visiting professor of Massachusetts
Institute of Technology
Research Center for Advanced Scienceand Technology, the University of Tokyo
Visiting Professor
Outside Director of the Company (current
position)
President of Chiba University ofCommerce
Outside Director of Okaya & Co., Ltd.
(current position)
President of Shimada Sogo Kenkyujo(current position)
Chairperson of the Board of Trusteesof Tokyo Metropolitan Public University
Corporation
Outside Director of Tech I.S. Co., Ltd.
(current position)

Independent

July 1987

Aoyama Audit Corporation(currently PricewaterhouseCoopers Japan
LLC)
April 1996 Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Representative Partner
June 2000 Outside Director of Ichiyoshi Securities Co.,Ltd.
July 2003
Deloitte Touche Tohmatsu Global
Middle Markets Leader
June 2008 Outside Director of ASAHI KOGYOSHA CO.,LTD.
June 2010 Outside Director of SBI Holdings, Inc.
March 2011 Outside Director of the Company (current
position)
June 2017 Outside Director of SBI Insurance Group Co.,
Ltd. (current position)
June 2017 Outside Audit & Supervisory Board Memberof Hokuetsu Kishu Paper Co., Ltd. (current:
Hokuetsu Corporation) (current position)
June 2018 Outside Director of UKAI Co., Ltd.

Audit & Supervisory Board Members
Hiroyuki Fujita

Audit & Supervisory Board Members
April 1989
August 1995
October 2000
April 2004
March 2018

Takaomi Ogawa

Director, Managing Executive Officer
September 1992 Joined Takano Yasuo Zeirishi Jimusho(current: Zeimu Sogo Tax Corporation)
August 2003
Director of Funai Zaisan Consultants
Keiyo Co., Ltd.
(currently Nihon Shisan Soken Co., Ltd.)
December 2009 President of Funai Zaisan Consultants
Keiyo Co., Ltd. (currently Nihon Shisan
Soken Co., Ltd.)
October 2013
Executive Officer, General Manager of
NSS Division of the Company
March 2016
Director, Executive Officer, General
Manager of NSS Division
June 2017
President of Nihon Shisan Soken Co.,
Ltd. (former: Nihon Shisan Soken
Consultant Inc.) (current position)
April 2020
Representative Director of Nitto
Fudosan Co., Ltd. (current position)
January 2022
Director, Managing Executive Officer of
the Company
Consulting Business Supervisor andGeneral Manager of NSS Division(current position)
March 2022
Director of Aoyama Financial Service
Co., Ltd. (current position)

22

Aoyama Zaisan Networks ｜ Integrated Report 2024

Shintaro Hashiba

Director, Managing Executive Officer
April 1987

Joined The Kyowa Bank, Ltd. (current: Resona
Bank, Limited)
October 2003 General Manager of Shin-Yurigaoka Branch
October 2004 General Manager of Tokyo Central Marketing Division 1
July 2008
General Manager of Shin-Toshin Marketing Division 3
May 2014
Director of J-COM Co., Ltd. (current: LIKE, Inc.)
Deputy General Manager of Sales Division
and General Manager of Business
Development Division
August 2014
Director of J-COM Holdings Co., Ltd.
(current: LIKE, Inc.)
November 2015 Joined the Company, General Manager ofManagement Planning Office
August 2017
Executive Officer, General Manager of
Administration Division
March 2020
Director, Executive Officer, General Manager
of Administration Division
July 2020
Director, Executive Officer, General Manager
of Management Planning Division
January 2022 Director, Managing Executive Officer of the Company
General Manager of Corporate Planning Division
March 2022
Aoyama Financial Service Co., Ltd.
President (current position)
March 2022
Director of Aoyama Zaisan Networks Kyushu Co.,
Ltd. (current position)
May 2023
Director, Managing Executive Officer of the Company
General Manager, Corporate Finance Division(current position)

Shinji Shimane
Director, Executive Officer
October 1995

Joined Ota Showa Audit Corporation(current: Ernst & Young ShinNihon LLC)
October 2000
Joined Avaya Japan Ltd.
September 2001 Joined Proggest Co., Ltd.
(currently Aoyama Zaisan Investments
Co., Ltd.)
August 2006
Director (concurrent)
January 2016
Representative Director of Shinsei
Aoyama Partners Co., Ltd.
(current position)
March 2016
Director, Executive Officer
Business succession consulting
General Manager of Business Division
January 2021
Director, Executive Officer
General Manager of Consulting
Business Division 4
January 2022
Director, Executive Officer, and General
Manager of BusinessSuccession Fund Services
March 2022
Aoyama Zaisan Investments Co., Ltd.
Representative Director (current
position)January 2024
Director, Managing Executive Officer of
the Company Business succession
General Manager, Advisory Fund
Division (current position)

Madoka Mori

OutsideIndependent

Director
April 1994

Joined Commercial Broadcasting TelevisionCorporation
Relay Line Operations Center(current: The Japan Commercial
Broadcasters Association)
April 1996
Became independent as a freelance announcer
July 2000
Joined Medical Welfare Research Institute,
Inc. (current: IHW Media Service, Inc.)
July 2003
General Manager, Business Management
Division, Medical Welfare ResearchInstitute, Inc. and Sky Perfect TV
Head of Announcement, Medical Welfare
Channel 774
July 2007
Became independent as a medical journalist
April 2013
Director, NPO Sienjyuku 21 (current position)
January 2022 Specified Nonprofit Corporation
Regional Team Medicine Promotion Council(TeamNET)
Director (current position)
March 2022 Auditor of Shosagi-kai Medical Corporation(current position)
April 2023
Hedgehog MedTech, Inc.
Member of Ethics Review Committee(current position)
March 2024 Outside Director of the Company (current
position)

OutsideJoined Mitsui Bank Limited(current: Sumitomo Mitsui Banking Corporation)
Joined Yamazaki Certified Tax Accountant Office
Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Registered as a CPA
Outside Audit & Supervisory Board Memberof the Company (current position)
Audit & Supervisory Board Member of Nihon
Shisan Soken Co., Ltd. (current position)

Independent

March 2018
December 2019
October 2020
January 2021
June 2022

Business Succession Navigator Corporation(currently Next Navi) Audit & Supervisory Board
Member (current position)
Audit & Supervisory Board Member of Aoyama
Zaisan Networks Kyushu Co., Ltd. (current position)
Audit & Supervisory Board Member of Aoyama
Financial Service Co., Ltd. (current position)
Audit & Supervisory Board Member of Aoyama
Family Office Service Co., Ltd. (current position)
Audit & Supervisory Board Member of Nihon
Digital Investment Co., Ltd. (current position)

Hisao Nakatsuka

Audit & Supervisory Board Members
April 1970

Joined The Tokai Bank, Limited(current: MUFG Bank, Ltd.)
April 1994
General Manager of Fujisawa Branch
January 1996
General Manager of Chofu Branch
January 1999
General Manager of Takenotsuka Branch
November 2001 Joined the Company
March 2002
Director, General Manager of Consulting
Department
August 2002
Director, General Manager of Administrative
Department

Hiroaki Rokugawa

Audit & Supervisory Board Members
April 1997
April 1997
June 2002
March 2007
June 2008

April 2006
Managing Director of the Company
September 2008 Joined Proggest Co., Ltd.
Audit & Supervisory Board Member (currently
Aoyama Zaisan Investments Co., Ltd.)
October 2010
Director of Aoyama Estate Co., Ltd.
October 2013
Audit & Supervisory Board Member of Nihon
Shisan Soken Co., Ltd.
March 2014
Director of Nihon Shisan Soken Co., Ltd.
March 2015
Advisor of the Company
March 2016
Audit & Supervisory Board Member (current position)

OutsideRegistered as Attorney (Dai-Ichi Tokyo Bar
Association)
Joined Hori & Partners
Joined Barack Ferrazzano Kirschbaum &Nagelberg LLP (Chicago)
Joined Tokyo Aoyama, Aoki, Komae Baker &McKenzie Law Office
Representative Attorney of Ogasawara Konno& Rokugawa

Independent

March 2009

Outside Audit & Supervisory Board Member of theCompany (current position)
Tsunagu Group Holdings, Inc.
Outside Director (current position)
September 2020 Outside Director of Abalance Corporation (current position)
April 2022
Representative Attorney of Tokyo Uchisaiwaicho
Law Firm (current position)
June 2022
Outside Director of Meiji Machine Co., Ltd. (current position)
September 2023 Outside Director of Open Up Group Inc.
December 2016

Aoyama Zaisan Networks ｜ Integrated Report 2024

23

Our Sustainability Corporate Governance⚫ Compensation for officers

Basic concept of corporate governanceTotal amount per type of compensation (thousand yen)

Based on our corporate policy of always making
proposals from the client’s standpoint with a fair and neutral
attitude, AZN firmly believes it is essential to establish
corporate governance to ensure compliance-oriented
management and to practice this policy. The Company’s
Board of Directors and Audit & Supervisory Board
acknowledge that the corporate governance framework
should primarily perform the following functions.

⚫ To protect and encourage the exercise of shareholders’ rights.
⚫ To ensure equal treatment of all shareholders.
⚫ To make timely and accurate disclosure regarding all
the important matters related to the company, including
its financial conditions, operating results, shareholder
composition, and governance.
⚫ To ensure the strategic orientation of the company, effective
supervision of management executives, and clear accountability

Corporate Governance System

Total amount ofcompensation(thousand yen)

Basiccompensation

Bonus

Restricted stockcompensation

Other

Director(except outside Director)

206

97

73

24

11

35

7

Audit & Supervisory Board
Member(excluding Outside Audit &Supervisory Board Members)

5

4

0

－

－

－

1

Outside Officer

43

36

7

－

－

－

4

Category of officer

Performance-linked

Of the following, Number of eligible
officers
non-monetary(persons)
compensation,etc.

Evaluation of the effectiveness of Board of Directors
department. Moreover, to strengthen the supervisory
function of the Board of Directors, the Company
has established the Compensation Council and theNominating Committee, at least two of whose members
must be Outside Directors.

The Company ensures the effectiveness of audits of
Directors' performance of their duties by maintaining theindependence of its Auditors and Audit & Supervisory
Board Members from the Board of Directors, and bycollaborating with auditing firms and its in-house auditing(1) Board of Directors

The Board of Directors deliberates and makes decisions on important matters concerning the Company’s management, and oversees theCompany's business and general management. Each of the two Outside Auditors has an advanced level of expertise, and they provide reliable
management oversight from their professional perspectives.

(2) Executive Officers

In light of the segregation of management and implementation, AZN has instituted an Executive Officer system. Executive Officers execute theoperations of the divisions or departments under their control, in accordance with organizational regulations and rules on the segregation of duties
set forth by the Board of Directors.

(3) Executive
Committee

The Executive Committee, consisting of the President, full-time Directors, and Executive Officers, meets on a weekly basis to verify management
policies and discuss management strategies and business execution for the purpose of sharing problem awareness and having smoothcommunication among all members.

(4) Compensation
CouncilRemuneration for directors, within the total scope of remuneration approved by the General Meeting of Shareholders, is determined by theCompensation Council, which is composed of Directors selected by resolution of the Board of Directors. The Compensation Council is composedof three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising the transparency and objectivityof the review process.

(5) Nominating
Committee

The Nominating Committee, a voluntary advisory body to the Board of Directors, deliberates on the selection and dismissal of senior management
and Directors and recommends candidates to the Board of Directors, which are decided by the Board of Directors. Also, the Nominating
Committee is composed of three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising thetransparency and objectivity of the review process.

(6) Compliance
Committee

The Compliance Committee, consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, and external
legal counsels (attorneys), has been established in conjunction with the Board of Directors as a forum for deliberation on risk management andlegal compliance by the Company.

(7) Sustainability
Committee

The Sustainability Committee, consisting of the President and full-time Directors, was established to build a foundation for sustainable growth,
to oversee and monitor sustainability policies, strategies, and measures, and to manage and evaluate the progress of objectives resolved by the
Board of Directors.

General Meeting of Shareholders

AZN strives constantly to improve the effectivenessof its Board of Directors. AZN undertakes an annual
questionnaire survey of all Directors and Audit &Supervisory Board Members regarding the effectivenessof the Board of Directors, using the evaluation points listed
at right. The results are then discussed and reported to
the Board of Directors. See right for a summary of last
fiscal year's survey results.
Conduct a questionnaire

Collect responses from all
the Directors and Audit &Supervisory Board Members

Questionnaire evaluation items

Summary of questionnaire results⚫Composition of the Board of
Directors and Executive Officers⚫Operation of the Board of Directors⚫Agendas of meetings of theBoard of Directors⚫Supervisory framework by the
Board of Directors⚫Supervisory framework byshareholder

About the Board of Directors of theCompany, there were no importantmatters raised in each evaluation
item, whereas some findings about
the Board of Directors operations
were noted. We intend to make some
improvements, aiming to realize a more
effective Board of Directors.

Have discussions basedon questionnaire results

Report discussion results
to the Board of Directors

Risk management
Based on its Crisis Management Regulations, AZN
defines external crises, internal crises, disasters, andother crises as described at the right, and defines how to
respond to crises when they occur. In the event of a crisis
that seriously threatens corporate operations, a task force
is immediately formed and company-wide action is taken
to resolve the problem.

❶E xternal risks● Information leak❶
❷ Problems involved in business operations (including●
customer consulting services)❸ Civil violent incidents, contact/problems with anti-social forces●❹ Criminal acts by employees (fraud etc.)●❺ Other risks/incidents associated with AZN’s credit●❷ Internal risks●T❶ raffic accidents by employees (property/personal damage)❷ Internal troubles (sexual harassment etc.)❸M ishaps of employees and their families, other work accidents❹ Other cases constituting a crime by employees❸D isasters etc.

❶ Extraordinary disasters including natural disasters●

Legal Counsel

Audit & Supervisory Board

Nominating Committee
Compensation Council
Compliance Committee

Board of Directors
Audit Firm

Sustainability Committee
Executive Committee

President
Departments / Affiliates

Internal Audit OfficeCompensation for officers
AZN's Board of Directors has adopted a policy for
determining the details of compensation for individual
Directors.
Compensation for individual Directors for the fiscal year
in question is determined by the Compensation Council,
which is composed of 3 or more Directors (at least 2 of24

Aoyama Zaisan Networks ｜ Integrated Report 2024

whom must be Outside Directors) selected by the resolutionof the Board of Directors to increase the transparency andobjectivity of the review process. Its methods of determining
the details of compensation and the compensation sodetermined shall be consistent with the decision-making
policy resolved by the Board of Directors.

Information security management
For the purpose of continually maintaining andstrengthening our information security management
structure including personal information management,
we have obtained the International Organization forStandardization (ISO) 27001 international accreditationand information security management system certification.
We have developed and maintain systems based on thisstandard, and continue to further strengthen our systems
for managing confidential information.

Compliance initiatives
For the purpose of practicing fair and bona fide
management in compliance with laws, a Compliance
Committee consisting of the President, full-time Directors,
Executive Officers/General Managers of the divisions, andoutside legal counsels (attorneys) has been established. The
Compliance Committee performs the following operations:❶ To recognize potential risk of losing trust from the securities market andclients in business operations, and prepare countermeasures (draft)❷ To review if there is any compliance issue with specified joint real estate
venture operations, and give approval of their execution❸ To review and report preventive measures against serious compliance violations❹ To examine/check suspicious compliance activities (potential complianceviolations)

Aoyama Zaisan Networks ｜ Integrated Report 2024

25

Our Sustainability Message from Outside Directors
Combining interpersonal skills, digital, and teamwork

Focus on laying the foundation for sustainable growth

As a firm that operates in the high-net-worth segment of the market, training consultants to be at the forefront of
this business is a major task.
It is also important to create a digital environment that supports consultants and to have a diverse team.
Creating an environment where each individual can learn and grow will further enhance the quality of the proposals
we make to our clients.

In February 2024, we revised downward our forecast for FY2024 as previously announced in the Medium-Term
Management Plan.
The reasons for this revision include the intensifying competition surrounding Advantage Club and the fact that
our consultant training is only partway complete.
From FY2024, we intend to step up our investment in human resource development, aiming for medium- to longterm growth.

Recently, the Nikkei Stock Average hit an all-time high.
Meanwhile, real estate prices continue to rise, especially inurban areas. Given this, it is clear that the high-net-worthclass in Japan will keep increasing. But who are thesehigh-net-worth individuals? Although there are definitions
such as "those owning more than several hundred million
JPY in assets," the specifics are not easy to define clearly.
Some corporate owners possess real estate and financial
assets, while others have management assets, including
human assets and intangible assets. For corporate owners
in particular, the management assets gained through goodmanagement can be significant.
These diverse high-net-worth individuals are our clients.
Our consultants stand at the forefront of this organization.
The most important task for us is developing humanOutside Director

Haruo Shimada

26

Aoyama Zaisan Networks ｜ Integrated Report 2024

resources capable of responding to the diverse issues,interests, and needs of high-net-worth individuals, andmaintaining and strengthening relationships of trust withthem on an ongoing basis.
In the past, consultants were often viewed as "loneplayers," but in today's era of rapid change, this style has
its limits. In recent years, both teamwork and use of digitaltechnology have become increasingly important.
Data accounts for a large portion of intangible assets inour society, and is increasing each year. Mindful of thesetrends, we are accelerating our DX efforts. Creating a
database detailing each client's unique situation enables
our consultants to make better proposals based on thisinformation. Also, if the database details how we haveassisted our clients, junior employees can learn a lot fromthe actions of their senior colleagues.
These DX initiatives are progressing steadily. However,
we cannot gain meaningful information without building
relationships of trust with our clients. The interpersonal
skills of individual consultants has been and still is a crucial
element.
At the same time, in team building, it is important toensure diversity. Adding different perspectives elevates thelevel of discussion within the company and improves thequality of the team. This will be reflected in the proposals
we make to our clients. To this end, we need to ensure
women, who make up half of our human resources, canplay an active role. This year, we welcomed two women
who will serve as Outside Director and Executive Officer.
We look forward to their success, and are confident thatthe presence of role models close at hand will encourage
their younger colleagues.
In recent years, pressure on Japanese companies
from surrounding society has been increasing. Corporate
governance reforms have got underway, and management
conditions have become considerably more transparent.
The fact that listed companies are now required to disclose
information on human capital can also be positioned
within this trend.
It goes without saying that human resources areimportant to us. Individuals must have the desire to learn
and grow, while as a company, we must provide thenecessary environment and support. We intend to further
strengthen these efforts in future.

Over the past decade, we have experienced rapid
growth. Looking back over the past few years, ouroperating income has continued to increase by 30% to
40% each year. However, the rate of growth is expected
to slow somewhat, with operating profit projected to be
3.5 billion yen (+7.2%) in FY2024, compared to 3.265
billion yen in FY2023.
The Third Medium-Term Management Plan announced
in February 2022 initially set an operating income targetof 4.5 to 5 billion yen for FY2024, so 3.5 billion yen isa considerable downward revision. There are two main
reasons for this.
The first reason stems from a review of our businessexpansion policy. ADVANTAGE CLUB, a real estate
joint ownership scheme in which customers jointly own

Outside Director

Keiji Watanabe

real estate in urban areas and receive income throughreal estate leasing, is a pioneer in this field and has
gained a strong market share. However, in order tocontribute to the succession and management of ourclients' assets, we made the decision not to embark on
unreasonable expansion of our business, because webelieve it is important to select properties that meet ourrigorous standards. Therefore, we can presume that thecontribution to earnings of ADVANTAGE CLUB will beslightly lower than initially forecast.
The second reason is our expanded human capital
investment. The needs of high-net-worth individuals
are becoming more diverse and complex, and the skills
required of our consultants are reaching higher standards
every year. Unfortunately, as an organization, we have notbeen able to respond to these environmental changes ata sufficient level. We have an urgent need to train excellent
consultants who can provide a wide range of consultation
services based on strong relationships of trust with ourclients. For this reason, we are expanding investment in
human resources to drive sustainable growth.
As an outside director, I initially expressed concerns overthe major revision to the operating profit target. However,
I was moved by President Hasumi's strong determinationand commitment to consultant development, andultimately did not oppose the revision. As a result, theimpact on our stock price was limited, partly becauseof the careful explanation offered to the market. For
management, such decisions are never easy. I do believethat it was an excellent decision.
So what about DX? This is an important theme for ourcompany, along with human resource development. The
key to success is to digitize all operations, break downorganizational barriers, and construct a single integrated
business process. First of all, we will work on developing
a database to support the work of our consultants andpromote fully digital utilization of the database to improve
the productivity of all employees, not just consultants.
We have updated our Purpose and Vision, and included
the sentence "becoming a leader in the wealth managementbusiness." We believe this will more clearly identify the
direction in which we are headed, both for our stakeholders
and for society. Naturally, we expect to see a positive impact
on the day-to-day activities of individual employees.

Aoyama Zaisan Networks ｜ Integrated Report 2024

27

Our Sustainability Sustainable management
Message from the Sustainability Committee

Three areas of materiality and initiatives of the Group
Committee manages and evaluates the progress of targets
set by the Board of Directors, while at the same timeoverseeing and monitoring sustainability policies, strategies,
and actions. Its members are made up of the President andManaging Executive Officers of the Company.
The Sustainability Committee has five subcommittees
including Promotion of TCFD, Instilling Management
Philosophy and Strengthening Human Resources,
Creating A Rewarding Workplace, Social Contribution, andStrengthening Governance. It is responsible for proposing
and promoting specific activities for improvement, basedon various themes and perspectives. The members ofeach subcommittee are selected by the Executive Director
from among personnel at related departments. Each
subcommittee sets goals and plans for achieving thesegoals, and undertakes activities through a process of
repeated discussion and verification.

AZN aims to address ESG issues by realizing thestrategies outlined in its Third Medium-Term Management
Plan, which commenced in 2022. As a comprehensive
property consulting company that supports the enduring
development of our clients' valuable assets and businesses,
we are committed to realizing our management objectiveof "Contributing to the happiness of our clients through thesuccession, operation, and management of property" byproviding environmentally friendly products and services toresolve property-related concerns, as well as our efforts to
reduce environmental impact in response to climate change.
As an advocate of 100-year property consulting,
AZN needs to build on the foundation of human resource
development, the source of our consulting services, toensure its own sustainable growth. Led by the Sustainability
Committee, we are committed to company-wide efforts
to realize a more sustainable society. The Sustainability

E
Environment

S

Promoting TCFD

Instilling management philosophy
and strengthening human resources

Creating a company
worth working forContributing to society

Stronger governance

SDGs

Quality of interpersonal skills

Quality of work styles

Quality of social contribution

Quality of protection

Realizing a societythat supports (thesuccess of) diverse
talents

A process of identifying materiality
resource development and corporate governance. In
identifying materialities, we identify social issues likely toexert significant impact on our company and on society,based on the steps shown in the diagram below.

In 2020, the Group identified as high-priority issues
both project-related materialities such as reducing
the environmental impact of buildings, and business
infrastructure-related materialities such as human

Step 2

Step 3

Identify social
challenges

Hold hearings
internally/externally andevaluate importanceAnalyze global social challenges/

Organize social challenges in terms

ESG trends and identify a wideof importance for external parties

range of environmental/social/economic issues(stakeholders) including ESG
investors and impact on AZNAoyama Zaisan Networks ｜ Integrated Report 2024

Future initiatives⚫Promoting water conservation and waste
reduction in conjunction with Advantage Clubtenants⚫Promoting the use of environmentallyfriendly materials, paints, equipment,
etc. by incorporating ESG perspectives
into our analysis of current situations
and recommendations for land use andconstruction support⚫Promoting buildings and urban developmentthat are considerate of water environment
conservation⚫Reducing waste and greenhouse gas
emissions

In addition to reinforcing employees’ own efforts to improve their interpersonal skills throughsocial contribution, the Group is committed to promoting diversity and establishing a pleasantwork environment for women and other diverse human resources, which is crucial to accepting
the diverse values of customers and resolving property issues.

Social28

Current initiatives⚫Switching to environmentally friendly facilities andclean energy-based electricity for Advantage Club⚫Endorsement and disclosure of therecommendations of the Task Force on Climaterelated Financial Disclosures (TCFD)

Current initiatives

Sustainability Committee

Step 1

We recognize that addressing climate change is an important management issue that affects business
continuity. In particular, we view CO2 emissions from real estate-related business activities as a major risk
impacting climate change. To this end, we prioritize environmentally friendly initiatives for their ability tocontribute to enhancing asset value and resolving social issues.

Realizing adecarbonized,
recycling-basedsociety⚫ System for promoting sustainability
Board of Directors

Internal
discussions &approvals

Business activities
with emphasis on
partnerships

Step 4
Identify materiality

Relevance to
the SDGs

2023-2024 Initiatives

G

Discuss and identify (finalize)
important challenges along two

Governancespectrums: importance for theGroup and importance for our
stakeholders

Continuing
improvement ingovernance⚫Instilling our management philosophy throughmorning meetings and corporate philosophy
training conducted by President Hasumi himself⚫Enhancing and expanding consultant training
programs such as ART system training and theConsulting Education Center⚫Promoting the use of parental leave⚫Expanding the contract employee system (eliminating
restrictions) to allow employees to continue working
after the mandatory retirement age of 65⚫Donating a portion of profits to organizations dedicatedto eliminating pet euthanasia completely, promoting
subsidized meals for children, etc., and offering support
through volunteer activities by employees⚫Strengthening management training through theuse of external educational institutions⚫Implementing a health management declarationand 100% health checkup rate
⚫Implementing volunteer activities for clean-ups in
the Minato City area
⚫Cultivating managerial personnel⚫Sharing examples of employees adopting diverse
work styles (promoting understanding)

Future initiatives⚫Expanding support for organizations dedicatedto eliminating pet euthanasia completely,
promoting subsidized meals for children, etc.
⚫Promoting advancement of women (increasing
the percentage of female employees
from approximately 30% to 40%, andthe percentage of female managers fromapproximately 19% to 30%)
⚫Workplace culture reform focusing on
employees' opinions through organization-wide
surveys, etc.
⚫Enhance consultant training by using external
educational institutions⚫Further health management, including
promoting opportunities to exercise andoffering dietary guidance⚫Training to promote active roles for women⚫Setting up holiday pay in hourly units

We regard local communities as a foundation for the life of all people including our clients, their families,
and the companies and employees they value, as well as a foundation for social and economic activities
and for leading happy lives. To ensure that our customers can live happily and that the value of their assets
in local communities continues to increase, we are committed to engaging with local communities.

Current initiatives⚫Contributing to social welfare through use of real estate for nursing care facilities such as hospices andgroup homes, facilities for the disabled, clinics, and other facilities of high public interest, as well as
helping revitalize local communities through use of real estate by attracting commercial facilities, etc.
⚫Creating mechanisms to give back to society by supporting the establishment of foundations⚫Contributing to urban development and regional job creation by collaborating with partners such as
public organizations, financial institutions, and companies on regional development projects
The Group recognizes corporate governance as an important management mechanism to maketransparent, fair, rapid, and decisive decisions. Director candidates are determined by the Nominating
Committee, executive compensation is deliberated upon by the Compensation Council, and theeffectiveness of the Board of Directors is evaluated. We have also established the Compliance Committee
consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, andexternal legal counsels (attorneys) as a structure to further compliance with laws and corporate ethics.

Current initiatives⚫Establishing appropriate managerial structures for the Group by instituting a Nominating Committee andCompensation Council to determine director candidates, as well as succession planning, etc.
⚫Operating the Compliance Committee and a fair and transparent Compensation Council to advancelegal compliance

Aoyama Zaisan Networks ｜ Integrated Report 2024

29

Our Sustainability Sustainable management
Approach to human resources strategy and investment in human capitalIn our Group, human assets (capital), from which ourconsulting services stem, is an extremely important formof management capital. By improving the interpersonal
skills of our employees and their capabilities to provide
high-quality services, as well as increasing the diversityof our employees, we can respond to the diverse values
and requests of our clients and offer further value-added
property consulting services. Investing in human capitalmeans investing in our business base and its foundationof sustainable management, which is essential for
the Group's ongoing sustainable growth. We monitor
operating profit per employee as an overall measure of
return on investment in human capital. We seek to improve
operating profit per employee by making progress invarious measures related to human capital.

⚫Operating profit per employee (consolidated)
10.96(million yen)
10

9.07

9
8

7.17

6.79

7
6

5.28

5
4
3

Endorsement of TCFD

Indicators and targets

The Group has declared its support for therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). The Group is engaged inbusiness activities utilizing energies from land and othernatural resources, and we recognize that addressing
climate change is an important management challengewith a considerable impact on our business continuity. We
prioritize environmentally friendly initiatives for their ability
to contribute to enhancing asset value and resolving social
issues, and we aim to meet the needs of both clients andtenants.

The total CO2 emissions of our Group have been
increasing due to the expansion of our business andincreases in the number of employees. However, byintroducing energy-saving equipment and changing power
contracts to a carbon-free plan, we have been reducing
CO2 emissions per square meter (CO2 emission intensity).
Our CO2 emission reduction targets for 2030 and 2050
are currently under consideration. We will continue toaddress climate change risks by extending and expanding
measures to curb emissions through ongoing TCFD
disclosures.

2⚫Changes in CO2 emissions [tCO2]

1

Scope 1 & 2

0

2019

2020

2021

2022

Scope 3 Emissions related to Advantage Club

2023

Scope 3 Other emissions
CO2 emissions intensity [tCO2/m2]

GovernanceAchieving sustainable growth for the Aoyama Zaisan Networks Group

Initiatives
・Creating a pleasant working
environment for all・Ratio of female employees: 30% /Target 40% (consolidated)・Ratio of female managers: 19% / Target
30% (consolidated)
・Promoting use of parental leave by
male employees
Initiatives
・Philosophy training(Hasumi Juku)・Partial donation of
profits
・Volunteer activities

Diversity

Improvinginterpersonal
skills

Initiatives
・Property consultant training
・Training of management personnel
・Implementing training programs for
employees at different levels

Enhancingand expanding
wealth, body,and mind

Increase inoperating profit per
employee

Education

Hiring

Initiatives
・System of equal pay for men and women・Annual review of the evaluation system
・Maintaining a salary increase rate of 5%
or more for two consecutive years
・Health checkup rate: 100%(consolidated)・Utilization rate of paid leave: 71.8%(non-consolidated)

Risk
management

Initiatives
・Managing working
hours and workers'
compensation
・Health management
・Establishing aharassment line・Performing stresschecks

Initiatives
・Reducing mismatches
・Attracting outstanding human resources
・Increasing numbers of applications
・Improving the hiring rate

Investing in human capital

Investment in human capital

30

Aoyama Zaisan Networks ｜ Integrated Report 2024

For moredetails, pleasesee here

The Group's Board of Directors deliberates and decides
on policies and important issues related to the overall
issue of addressing climate change.

CO2emissions 7,000[tCO2]

0.08460.085

0.0836CO2 emissions
intensity [tCO2/m2]

6,000

5,000

1,666
1,456

0.08

2,090

1,480
0.07754,000

Strategy

0.075
3,000

We conduct analysis of risks and opportunities in thevalue chain in the real estate industry (small-lot real estate
products), taking into account business characteristics
and the surrounding environment, including political,
economic, and social conditions, and we conduct
scenario analysis of the impact of each risk on business.

0.0719
2,000
4,265

4,121

4,294

87

101

101

106

2020

2021

2022

2023

0.07

1,000

0

Risk management

3,952

0.065

⚫ Total CO2 emissions ratio (2023)
Scope 1&2: 106 tCO2

The Sustainability Committee oversees climate changerisks and opportunities from a medium- to long-term
perspective for the entire Group, and performs supervisionand monitoring in cooperation with the Board of Directors,
with the results reflected in management strategy.

2%
Emissions related to
Advantage Club:4,294 tCO2

66%

Total emissions

6,490 tCO2
Endorsement of TCFD
For moredetails, pleasesee here

Scope 3: 6,384 tCO2

98%

Aoyama Zaisan Networks ｜ Integrated Report 2024

31

Our Data

Financial & Non-financial Data (Summary)Financial highlights

Non-financial highlights⚫ Net sales⚫Operating profit /Ratio of operating profit(million yen)

35,95236,098(million yen)

35,0003,500

30,0003,000
24,21325,00019,061

20,0002,500

19,118⚫ Shifts in number of consultants（%）(people)

14

200

3,265

9.0

8.4
1,603

6.8

7.7

7.3

10
8

1,856

1,500

10,000

1,000

4

5,000

500

2

0

0
2019
2020
2021
2022
2023
December December December December December⚫ Equity ratio
40.6

39.8

40.8
38.0

40.4

0

(yen)
90

70

Men

2019
2020
2021
2022
2023
December December December December December

70.00

69.82

3,000

2,780
2,377

2,500
2,000

⚫ Number of new recruits (new graduatesand mid-career) in FY2022

33.01

1,823

1,905

14 people

0

2019
2020
2021
2022
2023
December December December December December

0

2019
2020
2021
2022
2023
December December December December December

0

（％）

8,487

9,286
7,908

8,000
7,000

Total
44 people

8,682

8,599

6,273

7,977

7,760

100

8,794

8,781
7,654

90
6,527

6,140

6,139

6,111

6,000

80

5,000
4,000

70

3,000
2,000

500

10

(full-time employees only, excluding directors, contract employees,

9,000

2,076

1,000

20

10

⚫ Average salary and employees on leave)

10,000

Women

1,500

30

79.4%

(thousand yen)

61.22

40

Men

202 people

0

50
20

45%

50

⚫ Number of clients

60

30

Women

20.6%

(people)84.81⚫ Proportion of male employees
taking childcare leave

Total
298
people

100

2019
2020
2021
2022
2023
December December December December December

80

170

⚫ Percentage of managers(by gender)

150⚫ Earnings per share (EPS)

（%）
40

167

Women

96 people

6

15,000

1,303

211

183

12

2,629

2,000

203

⚫ Number of employees (by gender)

60

1,000
0

Men

2019
2020
2021
2022
2023
December December December December December

30 people

On September 1, 2021, the Company conducted a 2-for-1
stock split of its common stock. Pre-2020 amounts
and percentages have been replaced by amounts andpercentages that take into account this split.

2019

All employees

2020

Men

2021

2022

0

2023

Women

Wage ratio (female wages, with male wages set at 100)

Financial indicators
Units

December 2011

December 2012

December 2013

December 2014

December 2015

December 2016

December 2017

December 2018

December 2019

December 2020

December 2021

December 2022

December 2023

Net sales

Million yen

7,627

5,839

6,369

9,305

14,275

14,42014,562

17,227

19,061

19,11824,21335,95236,098Operating profit

Million yen

186

98

160

445

485

751

1,094

1,464

1,603

1,303

1,856

2,629

3,265

Ordinary profit

Million yen

166

91

142

467

471

628

943

1,358

1,503

1,195

1,796

2,499

3,359

Net income attributable to parent company shareholders Million yen

218

92

201

362

518

587

768

1,162

1,676

800

1,481

1,694

2,062

12,587

12,353

15,492

16,001

17,426

21,75723,491⚫Financial data

Total assets

Million yen

3,698

4,769

4,698

5,930

7,220

9,258

Net assets

Million yen

1,224

1,941

2,151

2,447

2,909

3,329

3,624

4,518

6,390

6,566

7,128

8,320

9,584

Cash flow from operating activities

Million yen

579

227

368

197

801

1,177

−1,277

272

2,300

1,942

2,389

2,219

2,488

Cash flow from investment activities

Million yen

122−1,203

1,886

43

−162

−1,061

-840

332

723

−753

−631

−1,256

212

Cash flow from financial activities

Million yen

−602

247

−425

253

370

1,116

2,174

−1,787

1,215

−215

−374

882

−858

EPS (earnings per share)

yen

10.32

4.36

9.26

15.49

22.11

24.88

33.37

50.94

70.00

33.01

61.22

69.82

84.81

BPS (book value per share)

yen

57.92

59.74

91.59

103.63122.72139.86158.41

197.59259.48262.39294.61

340.13390.42

Dividend per share

yen

3.25

3.75

5.00

7.50

9.00

11.50

15.00

19.50

25.00

26.50

28.00

35.0

41.00

ROA (return on assets)

％

4.1

2.2

3.0

8.8

7.2

7.6

8.6

10.9

10.8

7.6

10.7

12.8

14.8

ROE (return on equity)

％

17.8

7.4

11.8

15.9

19.5

18.9

22.2

28.6

31.1

12.7

22.0

22.0

23.2

ROIC (return on invested capital)

％

6.9

3.4

4.4

10.1

11.4

11.9

11.5

13.4

13.0

8.0

10.0

12.2

12.9

Equity ratio

％

33.1

26.5

45.7

40.9

40.0

35.8

28.7

36.5

40.6

39.8

40.8

38.0

40.4

*The Company conducted a 100-for-1 stock split of its common stock on January 1, 2014, and a 2-for-1 stock split of its common stock on September 1, 2021. Pre-2020 amounts and percentages
have been replaced by amounts and percentages that take into account this split.

32

Aoyama Zaisan Networks ｜ Integrated Report 2024

Aoyama Zaisan Networks ｜ Integrated Report 2024

33