Aoyama Zaisan Networks Company, Limited

Full-YearBusiness Summary
for Fiscal Year 2020
(30th period)

January 1 to December 31, 2020

AoyamaZaisanNetworks

Securities Code: 8929

To Our Shareholders

Highlights of Consolidated Business Results

Establish a business modelthat can scale using a combination of“technology”x“external collaboration”
President

Masazumi Hasumi

We would like to express our heartfelt sympathies foreveryone who has been affected by the spread of novel
coronavirus disease (COVID-19).
We will be celebrating our 30th anniversary in
September 2021, which is entirely due to the support ofour shareholders, and for this we would like to express
our heartfelt gratitude. Looking back on our history, theGlobal Financial Crisis in 2008 caused a significant
transformation in our business model, which emphasizedproperty consulting, and this led to the achievement ofour 2014-2018 Medium-term Management Plan.
The way that we interact with our customers and do
business has changed significantly because of thecoronavirus shock. In order to smoothly obtain new
projects and carry out consulting even in a situation
where it is difficult to communicate with customers face
to face, we have created a new sales system by setting
up a studio for the active utilization of web seminars andweb conferencing. The future of the economic
environment continues to be unclear as we still cannot
forecast when COVID-19 will come under control.
However, the number of inquiries has increased since thesecond half of 2020 as compared with the previous year
as consulting needs for property succession, businesssuccession and property management have increased. It
can be said that 2020 is a year where we sowed avariety of seeds for future growth.
1

Going forward, we will not be changing the final step inproperty succession and business succession consulting
where we solve problems with customers face to face.
However, we would like to create a point of contact withcustomers, network members and partner companies bydigitizing the entry point to sales. Furthermore, we will
respond to growing property management needs
through management that uses stable development of
products that utilizes the Real Estate Specified Joint
Enterprise Act, and securities in the IFA Business, which
will be newly launched.
The world is in the midst of the Fourth Industrial
Revolution, which is symbolized in what we calldigitization, DX, AI, etc., and the Company is advancing
technology fortification in the Second Medium-Term
Management Plan from 2019. By using the establishmentof a business model that can scale using a combinationof“technology”x“external collaboration”and the quick
provision of new services as growth strategies, we will
aim not to“add”growth, but“multiply”it.
Furthermore, the Group promotes initiatives for ESG/
SDGs, and considers the creation of products andstructures for a carbon-free society. By working to solve
issues that society faces pertaining to property, we willcontribute to society and realize sustainable growth.
We ask that all of you continue to give us your support.

Fiscal year 2020 was a year where we were significantly affected by various factors such as being unable to increase thenumber of customers ordering new consulting from the beginning of the period due to the impact of the spread of COVID-19,
and having limited opportunities for consulting with existing customers.
Customers’needs have been changing for succession that includes not only succession of property, but also non-property,
such as family memories and contribution to society, with regard to property succession, even safer and more stable property
management and succession that includes M&A and discontinuance with regard to business succession. We will respond tothese needs and devote our full attention based on technology and external collaboration that considers future growth.

Net sales

Operating income

19,118 million yen(Up 0.3% year-on-year

1,303 million yen)(Down 18.7% year-on-year(unit: million yen)(unit: million yen)

21,00019,061

19,118)(forecast)

1,630

Net profit per share

66.02 yen(unit: yen)

140.00105.42(forecast)

1,603(forecast)

1,303
66.02

Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021
(29th period)(30th period)(31st period)

Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021
(29th period)(30th period)(31st period)

Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021
(29th period)(30th period)(31st period)

Consolidated Financial Highlights
Consolidated Balance Sheet (Summary)
Total assets 15,492

Cash and deposits

8,494Interest-bearing
liabilities

5,734❶Total assets 16,001❷Interest-bearing liabilities

2,478(Remaining loan period: 15 years)❷Interest-bearing liabilities
other than the above
Cash and deposits

9,428Real estate for sale

3,367Real estate for sale 319

3,264Real estate for rent

2,571

Net assets

Other assets(Equity ratio 40.6%)

3,281

3,692

(Average loan period: 5 years)

Other liabilities

Other liabilities
Real estate for sale 1,145(unit: million yen)

6,390

End of ﬁscal year 2019

2,471 Annual NOI: 173M

❸Net assets

Other assets(Equity ratio 39.8%)

3,783

6,566

End of ﬁscal year 2020*❶Total assets
Total assets amounted to ¥16,001 million, up ¥509
million from the end of the previous period due toan increase in cash and deposits.
❷Interest-bearing liabilities
Interest-bearing liabilities amounted to ¥6,170
million, up ¥435 million from the end of the previous
period due to an increase in long-term loans
payable.
❸Net assets
Net assets grew by ¥175 million from the end of
the previous period to reach ¥6,566 million.

*‌In fiscal year 2020, funds of the same amount as real estate for rent were procured with the loan period where repayment with the NOI of the said real estate waspossible. Furthermore, a portion of interest-bearing liabilities were repaid in order to maintain a sound D/E ratio level.
2The Company’s initiatives based on environmental analysis of the COVID-19 crisis
External environment・‌Inauguration of Suga administration in
September 2020・‌Promotion of measures against COVID-19,
Govern- DX, the reorganization of small and mediumsized or middle market firms and productivity
ment
improvement, regional revitalization, etc.
・‌Revision of Business Succession Facilitation
Act, etc.
・‌Reduction of economic activities due to
COVID-19・‌Expansion of the use of the internet・‌Economic measures such as sustainability
benefits and employment adjustment benefits・‌Excess liquidity of capital due to economic
Ecomeasures and high stock prices globally
nomy ・‌Rate of absent successor approximately
65.1% in Japan *1・‌Decrease of business collapse, increase insuspension or discontinuance of business *2・‌For amount of investment in commercial realestate in 2020, Tokyo metropolitan area
stably continues to be third in the world *3・‌Advancement of population decrease, lowbirthrates and longevity *4・‌Expansion of the impact of COVID-19
Society ・‌Decrease of opportunities to go out or beface to face・‌Advancement of the use of the internet・‌Postponement of the Tokyo Olympics

Tech- ・‌Usage of 5G, big data, AI・‌Advancement of the use of the internet andnology digitization*1 According‌to“Survey of‘Rate of Absent Successor’in JapaneseCorporations Trends (2020)”by TEIKOKU DATABANK, Ltd.
*2 According‌to “Survey of ‘Suspended, Discontinued or Dissolved
Companies’Trends 2020”by TOKYO SHOKO RESEARCH, LTD.
*3 According‌to“Japan Capital Flow - 2020”by Jones Lang LaSalle K.K.
*4 According‌
to“2020 White Paper on Aging Society”by Cabinet Office3

Environmental analysis report
COVID-19 is impacting the world, but we will introduce initiatives

and measures based on the Company’s business environment.

[Economic and social environment]■ Business collapse & suspension or discontinuance of businessIn 2020, 7,773 businesses collapsed (down 7.2% year on year) and
49,698 businesses were suspended or discontinued (up 14.6% year onyear). We have analyzed that this may be due to the prolonging of the
impact of COVID-19, excessive debt and other factors despite securing
short-term working capital through COVID-19 measures from thegovernment, etc., and that there may be an increase in corporations
abandoning businesses and an increase in M&A and business being
suspended and discontinued in the future. Consultations with theCompany have increased since the second half of 2020.
■ Property management
Measures, such as sustainability benefits and employment adjustment
benefits, were taken in Japan as economic measures for COVID-19, andsimilar measures were taken in various countries around the world. We
have analyzed that high stock prices globally are affected by excess
liquidity of capital because of this. Property management needs are alsochanging, and the need for something that is highly stable and can diversify
risk is increasing. We are proactively providing products based on
customers’perspectives.
[Technology]■ DX promotion
The government has actively been laying out initiatives such as handingout grants and subsidies for the promotion of DX. Furthermore, social
needs for DX have been accelerating further during the COVID-19 crisis.
The Company operated a portion of the ART system’s present data
analysis in August 2020 as a technology fortification initiative, and officiallyreleased the portion that proposes measures on February 1, 2021.
Because of this, continuous service from present data analysis to proposing
measures using this system has been made possible. We will work tofurther improve productivity and standardize quality going forward.
■
Creation of an online environment and work environment
Amid restrictions on face-to-face communication, online communication
with customers is being requested, and the necessity of the establishmentof a framework that can swiftly receive consultations from customers isincreasing. We are being requested to respond in the era with COVID-19
by utilizing internal and external web conferencing tools and web
seminars. The Company has established an online framework, such as by
newly establishing our own studio.

Business discontinuation
support that utilizes funds

Aoyama Family Office Service

The Company manages the “BusinessSuccession Fund” as one solution forcorporations having difficulties with businesssuccession. This fund was established in 2016
by“Shinsei Aoyama Partners Co., Ltd.,”a joint
venture with Shinsei Bank, Limited.
This fund proposes new choices and supports
the change or discontinuance of business forbusinesses where smooth business succession
or M&A are difficult due to operating losses, etc.
Consultations from corporations whose financial
position is challenging due to the COVID-19
crisis, etc. are increasing. We will expand theBusiness Succession Fund by proactively holding
seminars to respond to customers’requests.

In January 2021, we established Aoyama Family Office Service Co., Ltd.
(AFOS), which is a new business that develops family office businesses
specializing in the non-property field.
Recently, family-owned businesses faced with the issue of sustainable
development are increasing against the backdrop of sudden changes to thebusiness environment and the diversification of families’values that support
business. It is necessary to support the“non-property”field with the unity of theone family that supports business as the focal point in order to sustainably
develop as a family business. AFOS welcomed Mr. Takashi Yoneda, whoparticipates in the planning of the family office for prominent families, as Director.
We will aim to expand business in the“non-property”field by strengthening
collaboration with regional financial
institutions, partners, etc. in order tosupport family businesses that support
regional economies.

ADVANTAGE CLUB

Appointment of Specified Joint Real
Estate Enterprise Council Chairman

ADVANTAGE CLUB, the real estate small-lot product established by
the Company, was very well received in 2020, and totaled ¥9.28 billion
as opposed to the target amount for establishment of ¥8.0 billion.
Amid seeing violent fluctuations of financial instruments and exchange
rates internationally, the need for stable property management, which
has the characteristics of real estate small-lot products, has increased.
The target amount for establishment in fiscal year 2021 has been set
at ¥15.0 billion, and a framework where products can be developed
regularly every quarter has been established. By expanding the sale ofproducts for our customers
at financial institutions, wewill work to provide our
products to manycustomers.

The Specified Joint Real Estate Enterprise Council,
which brought the sound development of the real estateindustry and the synergistic activities with public andprivate sectors working together into perspective, started
in March 2020. In September 2020, the President of theCompany was appointed as the first Council Chairman.
We will make regional revitalization and thedevelopment of public real estate products, etc. withhigh utility possible by utilizing structures from the Real
Estate Specified Joint Enterprise Act in this current timeof low growth, and gathering public and private funds aswell as funds from individual investors, etc. We will work
to expand business that responds to investors’needs aswell as social significance.

4The Company’s initiatives based on environmental analysis of the COVID-19 crisis

StudioSatellite office

In order to respond to the societal change that has put
online communication into the mainstream, the Company newly
established a studio for filming videos in January 2021. We will
provide diverse information to customers, primarily focusing on
online seminars and thestreaming of video content.
Increasing our ability tocommunicate will lead tothe further improvement of
non-face-to-face sales
capabilities andrecognition.

As a way to diversify COVID-19 crisis risk and as part of working
style reforms, we opened satellite offices in Akihabara, Fuchu andShin-Yokohama in December 2020. Just like the Head Office, eachsatellite office creates a highly productive environment by
guaranteeing conference rooms and individual booths. Because ofthis, employees’ averagecommuting time has decreased
by approximately 17 minutes.
Going forward, we willcontinue to aim to improve
employees’work environment
and work efficiency.

Our growing global network
We have established a nationwide network in Japan that includes
leading tax accounting firms and accounting offices. Through this network,
we provide consulting services to customers across Japan. As part of ourefforts to expand internationally, we have established overseas subsidiaries
in Singapore and Indonesia. Going forward, we will continue working with
top overseas partners and enhance our network both at home and abroad.

List of AZN nationwide network members(as of February 1, 2021)

Hokkaido
Tohoku

Chubu

■

Kinki

■

Japan

91 bases*92 offices

Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)
Nihon Shisan Soken Co., Ltd. Sapporo (Mitsunari Accountant Office)■ FPC Tax Corporation
■
■

Kanto

We renewed our official website, aiming to reinforce our seminars and video
content in order to acquire new customers as well as enhance our IR page.
We will work to provide all of our shareholders with informationthat is easy to understand.

https://www.azn.co.jp/

Shareholder incentives
Shareholder incentive
item number

Aoyama Zaisan Networks Company, Limited

One of the following shareholder incentives shall be presented to shareholders who possess 30,000
shares or more that are recorded in the shareholder register as of the end of December 2020.

A

Shareholder incentive
item number

The UKAI Group
common meal certificate
30,000 yen(1,000 yen per ticket x 30)

検索

B

C

Facility use tickets fromthe Kato Pleasure Group
30,000 yen (1,000 yen per ticket x 30)

Image

Image

Facility use tickets from the Kato Pleasure Group may be used at all facilities listed on the management facility page of the Kato
Pleasure Group web site (https://www.kpg.gr.jp/store/).(Limited to management facilities within Japan except for the online shop)

5

33.0

33.0 (forecast)

17.0

20.0

22.0 (forecast)End of fiscal year

(unit: yen)

25.0

Image

33.0

First half of fiscal year
Image

The UKAI Group common meal certificate may be used at each shop listed on the UKAI web site (https://www.ukai.co.jp/).
Shareholder incentive
item number

53 yenFiscal year endingin December 2021:
55 yen (forecast)Fiscal year ended
in December 2020:

Ukai special selectSukiyaki beef
worth 30,000 yen
Image

Dividends per share

14.0

Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 Fiscal Year 2021

Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)Aoyama Zaisan Networks Sendai Support (Asahi Accounting Office)
MIRAI Tax Corporation■ Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)■ AMAGUCHI Partners Tax Corporation■ Zaisan Networks Fukushima Co., Ltd. (Aozora Tax Corporation)■■(28th period)(29th period)(30th period)(31st period)

Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)Kujirai Tax Corporation■ Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)■ Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)■ Kanata Tax Corporation■ Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)■ Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)■ Nihon Shisan Souken Co., Ltd.
■ Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)■ Nihon Mirai Accounting & Tax Co.
■ Zeimu Sogo Tax Corporation■ eclat Consulting■ Humannetwork Inc. (Tokyo kaikei Partners Inc.)■ Hori Yoshihiro Certified Public Accountant Office■ Hisakawa Hidenori Certified Tax Accountant Office (Hara Hisakawa Tax and Accounting Corporation)■ SEMS Inc. (Shimizu Certified Tax Accountant Office)■ Mountain Co., Ltd. (General Management Service Tax Corporation)■ Aozora Tax Corporation■ Tsuda Accounting Group Co., Ltd. (Tsuda Accounting Office)■ Koide Certified Public Accountant and Tax Accountant Office■ Mimura Tax & Consulting■ Kagayaki Zaisan Networks Co., Ltd. (Kagayaki Tax Corporation)■ Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)■ Ai Partners Tax Corporation■ Masatoshi Yoshikawa Certified Tax Accountant Office■ Oyama accounting Co., Ltd (Rita Tax Corporation)■ Top Accounting Firm & co
■ Koyama Yoshiaki Licensed Tax Accountants■ Yokohama Saiwai Tax Corporation■ Enari Tax Corporation■

Chugoku■

Overseas

Overseas subsidiaries

Aoyama Wealth Management Pte. Ltd. (Singapore)■ PT. Aoyama Zaisan Networks Indonesia (Indonesia)■

Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)
Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)SMO Corporation (Teruyoshi Sakon Tax Accountant Office)■ Zaisan Networks Osaka Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Seki Soken Zaisan Partners Co., Ltd (AZ TAX Corporation)■ Shibata Business Consulting Co., Ltd. (SBC Partners Tax Corporation)■ Zaisan Networks Hyogo Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Inada Accounting Tax Corporation■ Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)■■■Website renewal

Tsubasa M&A Partners (Tsubasa Tax Corporation)
Aozorakeiei Tax Corporation■ Aoyama Zaisan Networks Kanazawa (HATAKE Management Group)■ Kimura Business Succession Brain Co., Ltd. (KIMURA KEIEI BRAIN CO., LTD.)■ Nochide Kaikei Tax Corporation■ Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)■ Nihon Soken Tax Corporation■ Zaisan Networks Nagano Co., Ltd. (Nozomi Tax Corporation)■ Mas Networks Co., Ltd. (The Narusako Accounting Firm Group)■ Misawa property consulting Co. (Misawa Accounting Group)■ SHINKO MANAGEMENT CENTER Co., Ltd. (SHINKO MANAGEMENT GROUP)■ MMPC Consultants Corporation (MMPC Tax Corporation)■ Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)■ Aim Nakano Accounting Co., Ltd. (ARIASU ZEIRISIHOUJIN)■ Zaisan Networks Nagoya Support (Meinan Consulting Network)■ tax accountants’corporation kanade■ Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)■

Shinichi Kishimoto Certified Tax Accountant Office
Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)Ikeda & Company Inc.
■ Fast Service Co., Ltd. (Nishikori Accounting Office)■ OKAYAMA SOUKEN Consulting Co., Ltd. (OKAYAMA SOUKEN Tax Corporation)■ Hikasa Accounting Co., Ltd. (Hikasa Accounting Office)■ Ishii Consulting Co., Ltd. (Ishii Tax Accounting)■ Kato Hitoshi Certified Tax Accountant Office■ Tax Accountants’
Corporation Wakamiya & Partners■ Second Ace Tax Corporation■ Business Support & Create Co., Ltd. (Shinkai Tax Accountant Office)■ Tsutomu Nakano Certified Tax Accountant Office■■■

Shikoku■■■

KyushuZaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)
Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)
Nonaka Keiei Corporation (Nonaka Management Consulting Office)Aoyama Zaisan Networks Kyushu Co., Ltd. (Shinohara Ueda Tax Corporation)
Sasaki Soken Co., Ltd. (Nishi Nihon Tax Corporation)■ Satsuki Partners Co., Ltd. (Satsuki Hisadome accounting firm)■ Nakata Certified Public Accountant Office■ Masahiko Yasuda Certified Tax Accountant Office■ Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)■ Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)■ NAGATA KAIKEI■ MIRAI TAX ACCOUNTING OFFICE■ IDEA Research Institute Consulting Co., Ltd. (IDEA Tax Corporation)■ Mori Accounting Tax Corporation■ Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)■■Overseas partners

Hong Kong investment consulting partner ■ American property management partner■ Major Indonesian industrial conglomerate ■ American real estate partner■

Expanding network
to Asia andNorth America

6Corporate Data (as of December 31, 2020)

Executives (from March 26, 2021)

N a m e o fCompany

Aoyama Zaisan Networks Company,
LimitedPresident

Head Office

3F Aoyama Tower Place, 8-4-14
Akasaka, Minato-ku, Tokyo 107-0052
Tel. +81-3-6439-5800

Director, Managing Executive Officer

Incorporated

September 17, 1991

Capital stock

1,153.52 million yen

Business line

Individual property consulting
Business succession consulting
Rreal estate solutions consulting

Number of
employees (Group)
Consolidated
subsidiaries

Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer

247

Director, Executive Officer
Outside Director
Outside Director
Outside Director
Outside Auditor (standing)

5 companies including Aoyama EstateCo., Ltd., Nihon Shisan Soken Co., Ltd.,
Aoyama Zaisan Investments Co., Ltd.
and Aoyama Zaisan Networks Kyushu
Co., Ltd.

AuditorOutside Auditor

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Shinji Shimane
Takaomi Ogawa
Hideo Matsuda
Shintaro Hashiba
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Hiroyuki Fujita
Hisao Nakatsuka
Hiroaki Rokugawa

Notes for Shareholder
Stock Overview (as of December 31, 2020)
Number of shares in issue……………………12,142,400
Number of shareholders… ……………………… 5,230
Major Shareholders (Top 10)
Name

Masazumi Hasumi
Yasuo Takano

NOMURA PB NOMINEES LIMITED
BUS – MARGIN (CASH BP)
Nihon M&A Center Inc.
STATE STREET BANK AND TRUST CLIENTOMNIBUS ACCOUNT OM 02 505002

Shares held

1,236,600
665,800

Shareholding ratio

10.18
5.48

533,700

4.39

500,000

4.11

464,400

3.82

Custody Bank of Japan, Ltd.
(trust account)343,400

2.82

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

312,700

2.57

Custody Bank of Japan, Ltd.
(trust account 9)300,600

2.47

200,000

1.64

183,700

1.51

Capital Asset Planning, Inc.
The Master Trust Bank of Japan,
Ltd. (trust account)

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

Stock exchange listings
Public announcements

January 1 to December 31
December 31
June 30in March
Mitsubishi UFJ Trust and Banking
Corporation
Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711 (toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo
Post Office 137-8081
Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department
TSE Second Section
To be announced on the Company’s website(For reference)
1. Shareholders’address changes, repurchase requests, and such other procedures, asa rule, are filled with the account-administrating institutions where shareholders
have their accounts (securities companies, etc.). Shareholders are requested tocontact their account holding securities companies, etc., for information.
Shareholders are reminded that application filings cannot be made with theadministrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trustand Banking Corporation, Head Office Branch.