Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended March 31, 2021
(Based on Japanese GAAP)May 11, 2021
Company name:

Aoyama Zaisan Networks Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
8929
Representative:
Inquiries:

URL

http://www.azn.co.jp/President
CFO

Masazumi Hasumi
Shintaro Hashiba

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

May 11, 2021–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:YesNoTEL

03-6439-5800(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended March 31, 2021 (from January 1, 2021 to March 31, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Three months ended March 31, 2021
3,376 (52.2)
282 (26.7)
276 (14.0)
474 127.7
Three months ended March 31, 2020
7,063 136.7
384
23.9
322
14.8
208 (32.3)
Earnings per share

Diluted earnings per share

Yen
39.04
17.19

Three months ended March 31, 2021
Three months ended March 31, 2020

Yen
38.84
17.09

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
16,562
16,001

As of March 31, 2021
As of December 31, 2020

Equity ratio

Millions of yen
6,496
6,566

Net assets per share%
39.2
39.8

Yen
534.40524.78

2. Cash dividends
Annual dividends per share

Year ended December 31, 2020
Year ending December 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
20.00

Yen–

Yen
33.00

Yen
53.00

22.00

–

33.00

55.00

Year ending December 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Net sales

Full yearMillions of yen
21,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
9.8
1,630
25.1
1,530
27.9
1,280
59.8
105.341

4. Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2021

12,151,800 shares As of December 31, 2020

12,142,400 shares

Number of treasury shares at the end of the period
As of March 31, 2021

124 shares As of December 31, 2020

124 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2021

12,146,906 shares Three months ended March 31, 2020

212,113,976 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of March 31, 2021

AssetsCurrent assets
Cash and deposits

9,428,038

9,740,231

Accounts receivable - trade
Real estate for sale521,733
319,452356,052
319,452

Other inventories
Income taxes receivable

891
40,281

1,334
147,468

Other
Allowance for doubtful accounts

330,410(944)

816,626(681)

10,639,863

11,380,485

2,483,214
195,666

2,454,294
195,666

133,971

125,260

2,812,852

2,775,221

37,158610,386

34,929583,495

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
SoftwareOther

29,44028,898

Total intangible assets

676,985

647,323

1,154,492
32,472

1,044,756
31,991

296,599
388,644

301,692
380,922

1,872,208

1,759,362

5,362,046

5,181,907

16,001,910

16,562,393

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2020

As of March 31, 2021

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings

139,105
100,000

97,868100,000

1,021,295
434,000

1,325,290
384,000

Income taxes payable
Accounts payable - other39,575932,376

22,990502,680

Provision for bonuses
Asset retirement obligations–
26,452

245,364–

Other

672,111436,2023,364,915

3,114,397

Bonds payable
Long-term borrowings

412,000
4,203,597

330,000
5,147,050

Long-term leasehold and guarantee deposits received
Long-term accounts payable - other

1,397,871
57,281

1,416,799
57,281

Total non-current liabilities

6,070,750

6,951,130

9,435,666

10,065,528

Shareholders' equity
Share capital

1,153,520

1,156,914

Capital surplus
Retained earnings

1,314,999
3,810,271

1,318,393
3,883,788

(201)

(201)

6,278,591

6,358,894

166,988(73,612)

177,724(42,766)

Current portion of long-term borrowings
Current portion of bonds payable

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

493,375

134,957

193,620
656

3,013
–

6,566,243

6,496,864

16,001,910

16,562,393

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)Three months ended
March 31, 2020Three months ended
March 31, 2021

Net sales

7,063,068

3,376,374

Cost of sales

6,016,517

2,504,901

Gross profit

1,046,551

871,473

Selling, general and administrative expenses

661,717589,230

Operating profit

384,833

282,242

Non-operating income
Interest income

308

132

954
–

2,954
24,335

Share of profit of entities accounted for using equity method
Other

2,041
1,947

–
3,499

Total non-operating income

5,250

30,921Dividend income
Foreign exchange gains

Non-operating expenses
Interest expenses

12,715

15,206

Commission expenses
Share of loss of entities accounted for using equity method

7,048
–

19,275481

Foreign exchange losses
Other

46,350
1,751

–
1,215

Total non-operating expenses

67,86636,179322,218

276,984

Gain on sales of investment securities
Gain on reversal of share acquisition rights––

23,097
190,353

Total extraordinary income–

213,450

Profit before income taxes

322,218

490,435

Income taxes - current
Income taxes - deferred

41,56073,051

26,710(9,830)Total income taxes

114,611

16,879Profit207,606

473,555

(687)

(656)

208,294474,211

Ordinary profit
Extraordinary income

Loss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)Three months ended
March 31, 2020Three months ended
March 31, 2021

Profit207,606

473,555

Other comprehensive income
Valuation difference on available-for-sale securities(91,304)

10,735(5,298)30,845

Foreign currency translation adjustment(96,603)

41,581

Comprehensive income

Total other comprehensive income

111,003515,136

Comprehensive income attributable toComprehensive income attributable to owners of parent

111,690515,792

(687)

(656)

Comprehensive income attributable to non-controllinginterests

6